Advance received from customer longer than 3 years whether deposit or loan
This query is : Resolved
29 December 2022
Pls share your opinion on the following query.
A foreign client made an advance payment of 2crore to an Indian co. In 2019. After that due to covid the services could be provided. During FY the Indian company completed service worth 20 lacs. The foreign client extended the period for completion of service till 31st March 2023.But still the substantial psty of service is likely to be pending. Will the advance lying as on date 31st March 2023 be treated as a loan or deposit in DPT.
What will be position if the foreign client extends the contract for further one year.
Thanks
PC Joshi
A foreign client made an advance payment of 2crore to an Indian co. In 2019. After that due to covid the services could be provided. During FY the Indian company completed service worth 20 lacs. The foreign client extended the period for completion of service till 31st March 2023.But still the substantial psty of service is likely to be pending. Will the advance lying as on date 31st March 2023 be treated as a loan or deposit in DPT.
What will be position if the foreign client extends the contract for further one year.
Thanks
PC Joshi
29 December 2022
Treat it as advance against supply of service.
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?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Should I report my US salary for January, February, March in Schedule FA?
- RCM INVOICING FROM NOV-2024
- 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?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
