Dear All
My Client is manpower contractor. He is receiving 100000 is adance for some personal commitments from service receiver. During the service tax audit the officials argue that the amount received from service receiver is taxable under law. We are providing interest for loan for the period from the advance is received, We are also giving evidence for those loans that is board resolution copy from service receiver for giving loan and account copy of the loan account from service receiver. But the audit officials not accepting those evidences. Please clarify.
CAclubindia
