Treatment of Service Tax in Accounting?

In the finance act 1994, clearly said that Service Tax is payble when this amount is realised from the party. if I raised a bill containing Service Tax and party gives me a part payment, Is my liability of Service Tax calculated on the basis of this part payment ? and What will be Our Service Tax liability when I dont get my full billed amount from the party for deduction of security Deposit, TDS or STDS from my bill ? please clarify .

dear friend,

There is no specific rule for treatment of part payments of bills but a reasonable interpretation is that in such case a proportionate amount of tax is to be paid as service tax.

You second query is quite confusing, i think you want to know the adjustment you can make from the advance received from the client.
The advance received is treated as a payment towards the service rendered, hence the total amount will be subjecet to service tax accordingly

Bye

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