Advance tax liability

This query is : Resolved

MUKESH KUMAR (Querist)
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22 February 2018 Dear Sir,

We have received Advance from our client and we are service provider then we are liable to pay advance tax on this advance. Please replay as soon as possible.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 February 2018 No need to pay advance tax on advance received unless Service is rendered.

MUKESH KUMAR

MUKESH KUMAR (Querist)
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22 February 2018 Sir,
At this time our work in progress it will be completed in 2-3 month then we should liable to pay advance tax liability on Advance payment received.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 February 2018 You have to estimate the profit for the year and based on which advance tax is payable. Receipt of advance is not related but quantum of profit estimated is relevant.