Point of taxation

hello all,

i wanted to know the point of service tax lievy for the following transactions( selling space or time for advertisement)

1) ad hoarding service was given for the month of april may and june 2012 and invoice raised in july 2012

2) hoarding service given for the period june july and aug 2012 and invoice raised in aug 2012

for both payment done in aug sept and oct 2012 in parts

please do reply

Replies (5)

As per POT:
1) Invoice shd be raised within 14 days of completion of service or receipt of advance. HENCE UR BILL OF APRIL SHOULD BE RAISED BY 14 MAY & ur tax shd be paid by 5/6th june (Corporates) or the month folowning the end of quater(all other case)
BT
IF your contract is to provide service for the period april-june. then ur bill must be raised by 14th JULY & ST paid by 5/6 Aug or 5/6 oct.

2) It appears that ur contract was for June-aug & ur bill was raised in aug. there fore when u raise the bill it will have ST in it! Wen there are partial pmts they are considered to be proportionate inclusive of tax.

if invoice is not issued with in 14 days then ?

Then the POT shall be date of completion of provision of service.

Regards,

issue of invoice by 14 days or 30 days?

period of service- 1.4.13 - 30.4.13
invoice date should be 14th may or before otherwise the date of POT will be 30th april.

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