TaxTMI 
TaxTMI 
Under VAT my client has doing Construction business , he has received advances from his client, if delay payment of VAT amount (ADVANCE ) interest and Penalty is applicable
Advance Receipt from Customer
06 Feb 2015 
1 Reply 
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VAT on advance receipts: advances are not taxable unless specified, else interest and penalties apply for nonpayment.
Under the VAT framework, tax is payable on sale or when a notification specifies; mere receipt of an advance does not automatically create VAT liability unless a notification or provision treats advances as taxable. If tax is payable and not deposited within the prescribed period, interest and penalties may be imposed at assessment or under the Act and rules. (AI Summary)
Under the VAT framework, tax is payable on sale or when a notification specifies; mere receipt of an advance does not automatically create VAT liability unless a notification or provision treats advances as taxable. If tax is payable and not deposited within the prescribed period, interest and penalties may be imposed at assessment or under the Act and rules. (AI Summary)