advance payment

[sukhvinder singh]

De ar All,

Please clear the aspects of the payment made in advance by the service receipent , can it treated as advance payment as provided under sub rule 1(a) of rule 6 of service tax rule 1994

thanks

[YAGAY and SUN]

Yes, it will be treated at par with sub rule 1(a) of rule 6 of service tax rule 1994.  Service Tax will be paid on such advance payments. Required intimation pursuant to such (advance) payment of service shall be provided to the Range Superintendent.

AI Summary

Advance payment treated as taxable under service tax rules; tax payable on advance and intimation to Range Superintendent required. Advance payments by a service recipient are treated as advance payments under sub rule 1(a) of Rule 6 of the Service Tax Rules, 1994; service tax is payable on such advances and an intimation of the advance receipt must be provided to the Range Superintendent.