Dear All,
Actually we have received advance payment for the service. Shall we pay the service tax for the advance payment? or after made the bill then only we have to pay service tax?
Pls explain
Advance Thanks & Regards
Sathis
sathis (accounts executive) (311 Points)
02 September 2010Dear All,
Actually we have received advance payment for the service. Shall we pay the service tax for the advance payment? or after made the bill then only we have to pay service tax?
Pls explain
Advance Thanks & Regards
Sathis
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 02 September 2010
you shall pay service tax in advance
Nirav Worah
(CHARTERED ACCOUNTANT)
(396 Points)
Replied 02 September 2010
Dear Sathis,
Service tax is paid on payment basis so you have to pay tax on advance received by you.
Regards,
Nirav Worah
Viswanathan.C.P
(Manager-Finance and Accounts)
(332 Points)
Replied 03 September 2010
Service tax is payable on receipt basis on advances received from client .SO it does not matter whether you have raised the final bill.
Thanks and regards,
Viswanathan
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