Adjustment of Service Tax On Advance Receipt, Service Tax

[Raj Thakur]

Hi,

I am Raj Thakur, I want to know that if we are paying service tax on advance receipt and later on we are also paying service tax on invoices i.e. when the services actually rendered. Then how we can adjust the service tax amount paid on advance receipt and what accounting entry would be passed in the books of account.

Kindly Suggest.

Posts / Replies

[Brijesh Verma]

Any amount can be taxed once and only once. According to Point of Taxation Rules POT arises on invoicing, payment or completion which ever is earlier.

SO you need not pay tax again and there will not be a question of adjustment then.

[MANDAVILLI RAMAKRISHNA]

dr the customer by service tax amount on adv. payments cr the service tax collected account pay the taxes and  debit the ST collected account.

accounting entries to be conceptualized and can not be suggested easily in the forum.