Service Tax Advance Payment

[Siraj Shaikh]

Dear Sir,

A advance payment has to be made against the Service to be received towards Maintenance Contract. The Party is asking even for the Payment of Service Tax along with the Advance..... Can such advance be made and the credit be taken ?

 

AI Summary

Service Tax on Advance Payments: Eligibility and Procedure for Crediting Before Receiving Services Explained. An individual inquired about the possibility of making an advance payment, including service tax, for a maintenance contract and whether such tax can be credited. Respondents confirmed that service tax is payable on advance payments and can be credited. One respondent advised ensuring the service provider's reliability and suggested handling large advance payments carefully. Another sought references to regulations or notifications regarding claiming service tax credit on advance payments. The discussion focused on the eligibility and procedural aspects of claiming service tax credits on advance payments before receiving the actual service.