Is advance paid by the customer before rendering the services taxable ? and kindly explain the same frens?!!
7 Replies
CA Saiyum khan
(Practicing CA)
(690 Points)
Replied 21 August 2011
According the point of taxation rule the service tax is payable on any of the following point.
1. Providing of services
2. Raising the invoices
3 Receipt of advamce
Hence service tax is payable on receipt of advance money also.
Mythili
(Completed B com and pursuing CS Inter)
(68 Points)
Replied 21 August 2011
Thankx for the reply...But in my B COM books , its given as not taxable..!! soo confused on which is rite?!!
CA. Rashi Goyal
(Chartered Accountant)
(512 Points)
Replied 21 August 2011
As per point of taxation rules if any advance has been recieved than service tax is payable at the time advance is recieved.
MOHAMMAD RIZWAN CA-final
(rizwan)
(104 Points)
Replied 21 August 2011
advance received from customer is taxable in service tax
Arihanth Jain
(Chartered Accountant)
(1226 Points)
Replied 22 August 2011
Yes it is taxable even before point of taxation rules came into effect.
Jimmy
(CA )
(75 Points)
Replied 28 August 2011
i think Mythili, your question needs to be clear and re posted again books cannot print something so wrong as any advance was taxable as per old and new Service tax rules.
Regards,
CA Jimmy Chauhan
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