Interest on Advance Receipts

[MUNIRAJ SRINIVASAN]

Dear Sir,

I need clarification that Works Contract delay payment of tax for Advance receipt is interest is applicable ? kindly explain legal procedure ?

AI Summary

Interest Applicable on Delayed Tax Payments for Advance Receipts in Works Contracts per Invoice Issuance Rules A query was raised regarding the applicability of interest on delayed tax payments for advance receipts in a works contract. The response clarified that once a bill is issued, the service tax indicated in the invoice must be paid within the stipulated time, regardless of whether the amount has been received. If there is a delay in payment, interest must be paid from the due date until the payment date.