Respected Erudite Chartered Accountants
Greetings from Marudhar Arts, A Leading Auction House registered under the name of www.marudhararts.com where we sell antique coinages and vintage collectibles under the same name.
We generate two invoices; one is a Performa invoice which is like a rough draft or quotation intimating the prospective BIDDER / WINNER that he is supposed to pay the stipulated amount to receive the goods along with the tax invoice which is given when the customer has cleared his total dues usually accompanied with the product.
We get payments from our customers anywhere between Day 1 and Day 45, we would like to know as to when are we liable to pay the Service tax, when a Performa invoice is generated or when an actual tax invoice is generated
If we pay Service tax before we receive the actual amount?
I believe it shall be very difficult to maintain business operations since we are actually paying Service tax before we receive the actual amount from the customers.
Please advise me as to the best possible course of action.
Thanking You
Yours Sincerely
Rajender Maru
CAclubindia
