Dear Friend
This is a General query Please give me logic and lawful reply as i am working in construction co. we have 2-3 project under process no one is at completion stage that why we are recognising Profit on proportionate basis and as per service tax notification service tax will be paid on accrual basis. in my company we have to raise demad to customer for installment. according to law we need to book s. tax as i raise demand and deposit the tax accordingly but as per practical level if we passed the entry in tally or any software it became part of advance from customer now at end of year if we recognising profit advance from customer will take in considerantion whether it receive or not.
our boss telling me to passed the entry of demand in sofware that create the problem for us we are advicing them to we may mentain the record to demand in excel and will pay the s. tax accordingly but he is not ready how we resolved this problem. please give logic answer
CAclubindia
