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Point of taxation??

Queries 544 views 3 replies

SANJAY

CHARTERED ACCOUNTANTS

943 Points Joined January 2011

Dear members,

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

Replies (3)

CA Goutam Sharma

Chartered Accountant in Practice

468 Points Joined June 2011

Sanjay,

You are absolutely correct. new Point of taxation Rules have increased the significance of agreement in determining the tax liability.

Bills should be issued according to the agreement, (within 14 oct in your case).

5 th Nov is correct. Go ahead for sure

CA Unnikrishnan Nair N

Chartered Accountant

2083 Points Joined February 2011

If date of invoice is Oct 1st, then due date for payment is Nov. 5th. If no invoice is raised before 14th Oct, then due date of payment is Oct. 5th because the point of taxation is 30th Sept.