service tax

This query is : Resolved

Tara (Querist)
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20 April 2009 if a service provider received advance as a professional fees in march for the work which is to be done in next year and fees also not decided . whether any service tax liablity.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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20 April 2009 Yes. Service tax is payable on advance payment as well.

Jaina Shah

Jaina Shah (Expert)
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20 April 2009 Yes. Service tax is payable on advance payments. the liability arises on the date when service provider receives the payment. The payment which u receive should be considered as including service tax and the tax should be paid according to the rate applicable during that time

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