Service tax Qt.

Student (b) (875 Points)

05 June 2010

If a part payment is received agn a bill or advance payment is recd, is service tax assumed to be recd. proportionately?

Similary in case of part or advance payments made is service tax assumed to be paid proportionately?

pls reply asap.

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3 Replies

CA Sandeep Thakur (Managment Trainee) (188 Points)
Replied 05 June 2010

Hey Kirti

sandeep here..

yes of course the service tax liab arises on payment basis..

again whenever a part advance paymnet is received the sercvice povider will have to issue the invoice within the 14 days of receiving the paments

Please, revert for further assistance

thanks

sandeep

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Student (b) (875 Points)
Replied 05 June 2010

thanks sandeep.

confirm this eg. if my client receives 220600 as advance payment, then his serv . tax liability is 20000

EC is 600. he has to deposit this by 5th of next month?

similarly if he makes a advance/part payment of 110300 then serv. tax (cenvat) is 10000 & EC is 300.

at the end of the month he is liable to deposit 10000 twds service tax and 300 twds EC?

do you have any basic working of service tax with filled up st 3 form? if possible pls fwd it to me/upload here.

kirti -- kb3108 @ yahoo.in

CMA Ramesh Krishnan (Cost & Management Accountant) (71489 Points)
Replied 06 June 2010

Dear Kirti,

Your quote is correct, Since service tax is on Payment basis only

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