TO BE PAID ON COLLECTION OR BILL BASIS
This query is : Resolved
09 May 2011
09.05.2011
Dear Members ,
I have a querry . We are an outdoor advertisement company . So far we pay service tax based on collection basis . Ie we raise the bill for exmaple in april 2011 and we will receive the payment only after 3 to 4 months . When we receive the money against that bill we use to pay the service tax during that quarter's collection .
But today some one told me that from 1st of June 2011 onwards , we need to pay the service tax on the basis of billing and not on the basis of collection .
Can someone help me on this with an answer whether it is on collection mode or on bill mode .
thank you
sukumar
Dear Members ,
I have a querry . We are an outdoor advertisement company . So far we pay service tax based on collection basis . Ie we raise the bill for exmaple in april 2011 and we will receive the payment only after 3 to 4 months . When we receive the money against that bill we use to pay the service tax during that quarter's collection .
But today some one told me that from 1st of June 2011 onwards , we need to pay the service tax on the basis of billing and not on the basis of collection .
Can someone help me on this with an answer whether it is on collection mode or on bill mode .
thank you
sukumar
10 May 2011
The date is 1st July. New Point of Taxation rules have been notifed. Please read article in article section on FA 2011 - Analysis where the POTR is also discussed in detail.
In furture the invoicing would be the taxable event in normal circumstances.
In furture the invoicing would be the taxable event in normal circumstances.
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