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Billing of advance

This query is : Resolved 
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(Querist)
08 December 2009 As service tax is applicable on advance received from party then how we can make invoice of advance in which service tax is applicable.
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Shyam Lal Naik

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Shyam Lal Naik (Expert)
08 December 2009 For attracting service tax liability of advance, billing is not necessary.

The taxable event is receipt.

Bills can be raised after rendition of service.

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