Adjustment of tax paid on amount not received

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CA Sanjay Baheti (Querist)
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20 June 2011 Sir,
With the coming into force of Point of Taxatation Rules, tax liability crystalises on the issuance of the Bill. As such what would be the treatment in the Maintenance and Repair Service Category wherein :
the service provider issues bill at the begining of every month for the monthly service charges for the previous month. The liability arises as soon as the bill is issued. Even if the flat owners does not make payments for months as per the Point of Taxation Rules the Service provider have to pay the tax on the billed amount.
Now my question is, whether the service provider can adujst this amount of tax paid by him on the billed amount against which payment has not received by him, against his tax liability in the subsequent month?.

regards

U S Sharma

U S Sharma (Expert)
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20 June 2011 in half yearly returns, he is set free to adjust the amounts against which debit notes are issued, ( non payment)/ suplimentary credit note from servide provider.

after filing return, he is also eligible to revise the return upto 3 months effecting the debit notes issued by payee ( credit note in case of service provider)

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