Construction of residential complex

This query is : Resolved

Rajesh Joshi (Querist)
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08 October 2011 At presently when we issue a receipt to the party for payment, we mention that your next instalement is due on a future date.If we not mention the due date then what is the consequences.Can on this parameter service tax liabilty will be deferred till the payment received from party.

U S Sharma

U S Sharma (Expert)
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08 October 2011 Mere reminder of payment does not represent the service provided,

to get liable for service tax payment, agreement wise service provided or not / payment received or not, is to be confirmed on any specific date.

Rajesh Joshi

Rajesh Joshi (Querist)
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08 October 2011 If we intimate the party in advance for instalement due and issue a demand letter after the payment received ( Date Mention in Demand Letter is Just 7 Days Before from the Date of Payment Received )

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U S Sharma

U S Sharma (Expert)
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08 October 2011 intimation is alike "proforma invoice" which has no legal validity unless the final invoice is raised, so date of actual payment is to be considered.

however if within the period of notice the work is likely to be completed against the said intimation, service tax liability get stand.

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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08 October 2011 Service tax liability arises only when you raise a invoice or when you receive any advance for any services that has already rendered.