CA - Final (ST)
A question from our Online Test Series.
Mr. Z a Service Provider received an advance of Rs. 1,00,000 from Mr. X on 5-4-2015 as part payment for a service. The service was completed on 10-4-2015 and the date of invoice was 16-5-2015. Value of services provided by Mr. Z in preceding financial year was Rs. 50 lakhs. Determine the point of taxation in the above case.
Select the correct ans.
1. 05-04-2015
2. 10-04-2015
3. 16-05-2015
4. 06-07-2015
It will be 05-04-2015
As per POT Rules, 2011 since the invoice is not issued within 30 days, the point of taxation shall be the earlier of date of payment or date of completion of service.
In the given case, Mr. X has issued the invoice after 30 days, therefore point of taxation will be 05.04.2015.
Answer will b 05.04.2015
Since invoice is issued after 30days.
Answer from our Online Test Series.
KK & Company Chartered Accountant
Pune
CA Inter
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Abic and Mani Chartered Accountants
Kottayam
B.Com
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CCI
Pro
CAclubindia
