Service tax on advance received

[Asked by Guest]

Sir, I need your valuable support. My company having rent income is receiving advance rent at the time of signing contrat for 6 months and this is being adjusted some percentage in every month. Our practice is that we are paying service tax on monthly rent received including this adj. amount ( ST is not paid on advance received). Kindly suggest whether we should deposit ST on advance received or this practice is o.k. Thanks

AI Summary

Service tax on advance payments: advance rent is taxable on receipt, while refundable deposits may be treated differently.
Service tax is payable on amounts received before provision of the taxable service because the taxable gross amount includes any amount received before, during, or after provision of service; non deposit advance rent is taxed on receipt, whereas genuinely refundable rent deposits adjusted later may be treated differently.