service tax on advance payment

This query is : Resolved

lalit (Querist)
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25 September 2010 contractor received 5% advance payment of contract value. as per advance bill. on that time rate of tax 12.36% contractor paid service tax @ 12.36% on advance payment.contractor given services leter on. when services given rate of tax was 10.30% what rate of tax of service tax is applicable on advance bill

CA Punit

CA Punit (Expert)
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25 September 2010 service tax is payable at the rate which is applicable at the time of provision of service.... In ur case it is 10.30%

you can adjust the excess service tax paid on the advance against future service tax payment subject to max adjustment of Rs. 100000

Porwal Consultancy

Porwal Consultancy (Expert)
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26 September 2010 View of Mr Punit is correct, but kindly take care that Rs. 100,000.00 is per return period & you also need to inform concern range superintendent by giving in writing about the same adjustment.

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