Advance from service recipient

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If service provider who has receive a advance let say of  rs10,000  in cash for consideration of service to be rendered in future from service recipient. Is service tax is to be levied at rate 12.36% on gross advance amount received or it as follow

gross amount* 12.36/100+12.36.

which of methods among two above is correct

Replies (1)

service tax will be charged upon 10,000 @ 12.36%.


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