20 February 2015
A Ltd. receives taxable services frm BLtd. of USA on 28-8-2013 for 6L.B Ltd raises invoice on 5-9-2013.A Ltd makes payment on 6-1-2014.Plz do guide what is point of taxation ,
21 February 2015
Hi As per Rule 7 of the POTR, 2011 the point of taxation in case of payment to be made as a recipient is the date of payment. However, if the payment is not made within 3 months from the date of payment, the point of taxation is the date falling immediately after the expiry of 3 months from the date of invoice.
In your case, the date of point of taxation is 5-12-2013 since three months from the date of invoice expires on 04-12-2013.
CAclubindia
