to be paid collection mode or bill raised mode

09.05.2011

 

Hello Members ,

We are an outdoor advertising company . The bills that we raise to our clients is being paid normally only after 3 to 4 months . And so far we are paying the service tax to the Govt on collection mode for that quarter ie the collection recd for the month april , may and june is being paid on or before 5th of July .

Today i heard from my friend that from 1st of june 2011 we need to pay the service tax on BILLING MODE , ie whatwver bills that we are raising should be paid by 5th of july 2011 .

can some one clarify on this . is there is any notification from the dept .

sukumar

Replies (1)

yes , the department has notified the point of taxation as bililng or advance receipt of payment which ever comes earlier would be the point of taxation, and service tax should be liable to be paid on that date basis.

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