Received advance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2013 received advance from the customer the order include service and excise duty products that mean doing with material job and without material job this cover service tax and with material job cover excise duty. we are receiving advance from customer this include 80%with material and 20% without materials.excise department said pay service tax on full advance recived. in our order it self 20% is covering service tax.

vikas Manglani

vikas Manglani (Expert)
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26 June 2013 Service tax can be charged only on service tax element and not the material element.You should submit service tax only on 20 % amount by submitting the woking of material and service element separately.