Service tax applicability on uncertain income

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akriti goyal (Querist)
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01 December 2014 hi experts
can you help me with the following query?
whether a pvt ltd co liable to charge service tax on advance payment received for the procurement of contract.
provided that such advance received will be returned to the party if the contract not procured i.e. contract is uncertain

visu iyer

visu iyer (Expert)
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02 December 2014 Yes.
service tax is applicable on all advances..

In case of advance returned; you can take credit of the same by raising a debit/credit note.