15 July 2014
Please solve this query: a.) An advertising agency received Rs. 75,22,413.00 as advance during the year 2012-13 b.) The service tax as per inclusive method amounts to Rs. 8,27,492.00. c.) Total sale bills issued by the agency during the year amounts to Rs. 65,55,713.00 d.) The service tax on (c) above @12.36% amounts to Rs. 8,10,286.00 e.) CENVAT during the year amounts to Rs. 7,01,677.00 QUERY: 1. What will be the service tax liability of the agency as on 31.03.2013 2. Since service tax is to be paid on advance received as per new point of taxation rule, how are we going to account for such tax paid in advance in the books.
16 July 2014
Since you have received advanced from your clients of rs 75,22,413 including service tax,your tax liabilities shall 1,25,815 (827492-701677)as on 31.03.13
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