Advance receipt for contract
This query is : Resolved
27 October 2012
In respect of a Contract service, the service provider receives 10% of the contract amount in advance before raising the invoice. After completion of the work or during the tenure of work, the service provider raises the invoice. In such invoice, the advance amount received is adjusted proportionately.
The query is whether the service tax is payable as and when the ADVANCE amount of 10% is received.
The query is whether the service tax is payable as and when the ADVANCE amount of 10% is received.
27 October 2012
Yes. As per Point Of Taxation rules, service tax becomes due when payment is received or invoice is raised whichever is earlier.
So, in your case, to the extent of 10% amount, service tax becomes due in the month payment is received by Service provider.
So, in your case, to the extent of 10% amount, service tax becomes due in the month payment is received by Service provider.
28 October 2012
No it depends on your turnover at the time of raising the advance Bill i.e mobilisation advance. If the amount paid is below 10 lac it is no service tax chargeable and not payable. In the bill raised if it is over 10 lacs then you have to charge Service Tax and pay it accordingly. It is also pertinent to mention that you are liable for TDS on advance taken by you for execution of contract.
02 January 2013
thanks for your reply.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
