Service tax on advance payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2009 We received an advance money claim from our service provider on which he charged service tax. WE understand that the service tax is to be remitted by receipient of advance money. but is it mandate for a person to pay the service tax while making advance payment to his vendor.
Kindly reply.

ANIL JANGID

ANIL JANGID (Expert)
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02 November 2009 Service Tax what we collected from the party should be
deposited to bank through TR-7 Challan before 5th of every
month and VAT is payable before 20th of every month.it is mandatory,unless intrest payable

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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02 November 2009 Hi,

Please check the link for Circular on Advance payment for Taxable services.

http://www.infodriveindia.com/Notifications/Payment-of-service-tax-in-18307.aspx

Service Tax Circular No 65/2003 CX(ST)

Subject: Payment of service tax in case of advance payment of value of services

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