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Advance Payment

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Querist : Anonymous

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Querist : Anonymous (Querist)
06 July 2011 Service tax is applicable on hotel industry from 1st may, 2011.

A hotel has taken advance from its customer of Rs. 500000 for his booking in july.

now the customer is refusing to pay Service tax on the amount.

Please help in this regard.
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CA Navin Jain

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CA Navin Jain (Expert)
06 July 2011 HOTEL IS LIABLE TO PAY ST ON ADVANCE PAYMENT, IRRESPECTIVE WHETHER IS RECOVERED FROM CUSTOMER OR NOT

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