Sir,
Can we consider the unbilled revenue as turnover of the company. We have spent money for ongoing projects but the invoice could be not raised since the work not completed 100%. My question is here. Assume that, we have incurred expenses of 50% of the invoice value. Without raising the invoice, can we book 50% of expenses incurred already as unbilled revenue and consider as turnover . if so, will it have the service tax implications?. are we liable to pay Service tax / VAT since it is Works contract?. Pl clarify.
Regards
N.Balachandran
Unbilled Revenue: Can It Be Counted as Turnover? Impacts on Service Tax and VAT Explained A user inquired whether unbilled revenue from ongoing projects can be considered as company turnover and its implications on service tax or VAT. They explained that expenses have been incurred for projects but invoices haven't been raised due to incomplete work. Responses indicated that invoices should be issued within 30 days, but invoicing can only occur after project completion. It was suggested that revenue should be accrued according to the matching concept, recorded as unbilled revenue, and included in turnover. Service tax or VAT liability arises after invoicing. (AI Summary)
TaxTMI 
TaxTMI 
