Advance Payment


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Advance Payment

 

a payment that precedes a transfer of property, the fulfillment of work, or the rendering of services. Unlike a deposit, an advance payment is not a method of ensuring the fulfillment of an obligation and therefore must be reimbursed if the contract stipulating the advance payment is not fulfilled. According to Soviet legislation, an advance payment among citizens is determined by an agreement between the parties. As a general rule, socialist organizations do not have the right to make or receive advance payments, because this would mean that one organization finances another. Such financing was prohibited by law at the time the 1930 credit reform was enacted (Collection of Laws of the USSR, 1932, no. 74, art. 454). USSR legislation allows advance payments only in some isolated cases. For instance, state construction and installation organizations working on a contract basis have the right to ask for advance payments from their clients (kolkhozes, cooperatives, or public organizations); kolkhozes can request them from consumers’ cooperatives according to contracts for the sale of farm output on commission; and enterprises supplying gas, water, and electric power, communications enterprises, civil aviation, and research and development organizations can request them from contracting parties. Before the kolkhozes were directly credited by banks, they could request advance payments from the appropriate purchasing organizations. Finally, organizations rendering paid services to the population can sign contracts for advance payments.

In Soviet labor law, a planned advance payment is a sum of money paid in the case of piecework pay as part of the wage until the work stipulated in the order is completed. The amount of such an advance payment is set forth in the agreement between the administration and the trade union organization at the time the collective agreement is concluded; however, it cannot be smaller than the worker’s official wage rate for the time put in (Collection of Decrees of the USSR, 1957, no. 6, art. 68).

As a rule, making nonplanned advance payments to workers and employees is prohibited. In exceptional cases, an enterprise may make a nonplanned advance payment to an employee as part of his wage in an amount not greater than his monthly wage. The amount of advance payment to an employee for business trip expenses is determined by the administration.

E. G. POLONSKII

References in periodicals archive ?
12/17/12), indicate that the IRS (1) respected the taxpayer's requests that cash bond deposits be converted to advance payments, and (2) paid Ford interest at the overpayment rate from the dates of the conversion requests to when refunds ultimately were issued to the taxpayer.
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481(a) adjustment) and applies only to advance payments received on or after the beginning of the year of change.
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Eligible workers fill out a Form W-5, which is captioned "Earned Income Credit Advance Payment Certificate," and give the bottom part to their employer.
Following recent discussions with the EU Commission, the Minister also confirmed that the level of the advance payment is set at 70% for 2017 rather than 50% as provided for in the EU legislation.
Motability drivers in Cardi can now choose from four manual Mazda2 models - the SE Air Con, Tamura and Sport Venture - and the Nav Tamura Nav T Automatic with no with no Advance Payment required.
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ABC receives a $1,500 advance payment for a three-year contract in which ABC agrees to repair sets or replace any broken parts.
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Balance payments, or full payments for those not eligible for an advance payment, will commence from 1 December 2017.

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