PAYMENT RECEIVED WITH TDS ALREADY DEDUCTED

This query is : Resolved

Sonal Kulshreshtha (Querist)
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07 November 2009 In a professional firm, if the payment has been received after deduction of TDS by the party and no bill has still been raised. Could it still be shown as advance to save service tax for the time being or the bill needs to be raised.

Rajkumar Maheshwari

Rajkumar Maheshwari (Expert)
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07 November 2009 It will be better that you Raised the bill.

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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07 November 2009 Dear Sonal
Service Tax liability arose on amount Receipt basis & not on raising of the Bill, since u already received amount so even if u show it as advance then also service tax liability arose and u can not save service tax

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 November 2009 Advance received against services to be rendered,since bill is not raised in this case, attracts service tax liability.

Sunil

Sunil (Expert)
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08 November 2009 You have to pay service tax on advance received even if service is provided later. You issue just the receipt and pay service tax. When you raise the final bill you will raise it with full service tax showing. However, you will adjust the service tax against advance payment and pay the balance service tax at the time the balance is paid by your client.