Point of taxation??

Save Share

This query is : Resolved

SANJAY (Querist)
Follow

08 October 2011 Dear Experts,
Please suggest me the date on which point of taxation arise in following condtion:-
A person is letout his various property to the tenents. The rent is payable on the basis of agreement is half yearly. and the service provider issue incoive once in 6 months. like April - september the invoice date is 1st of Oct. So as per new point of taxation rules the Service tax is payable in this case is half yearly instead of monthly. Here the date of payment of service tax will be 5th November..
Please Correct me if i m wrong..
Thanks
Sanjay Verma

U S Sharma

U S Sharma (Expert)
Follow

08 October 2011 invoice should be raised / accounted within two weeks of service provided/payment received.

SANJAY

SANJAY (Querist)
Follow

08 October 2011 But Mr. sharma here in the agreement the rent is payable on half yearly basis so i think the service is provided on half yearly. So i think there is the invoice is issued within 14 days of service provided..i.e.1st of October.
Please suggest if i m wrong..

U S Sharma

U S Sharma (Expert)
Follow

08 October 2011 half yearly basis may be issue of invoice or receipt, but is the agreement made specifically for "non monthly rentals" ? as in general renting rents are to be accounted monthly basis, may be accumulated or paid at diff intervals.

so the liability get stand on monthly basis, on completion/start of services, weather receipt issued or not.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!