Declared services - construction service, section 66e

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sumit mantri

sumit mantri (Querist)
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16 January 2015 A builder has received 20% advance from his customers at the beginning of the year.

@*CS Siddharth Bumb. *

@*CS Siddharth Bumb. * (Expert)
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17 January 2015 Construction service is notified by goverment as CONTINUOUS SUPPLY OF SERVICE.

As per proviso of rule 3 of point of taxation rules 2011,
* in case of continuous supply of service where the provision of the whole or part of the service is determined periodically on the completion of an event in terms of a contract, which requires the receiver of service to make any payment to the service provider, the date of completion of provision of service;
* wherever the provider of taxable service receives a payment up to rupees one thousand in excess of the amount indicated in the invoice, the point of taxation to the extent of such excess amount, at the option of the provider of taxable service, shall be determined in accordance with the provisions of clause (a)of rule 3.
Explanation .- For the purpose of this rule, wherever any advance by whatever name known, is received by the service provider towards the provision of taxable service, the point of taxation shall be the date of receipt of each such advance.].

Thanks and Regards,
Siddharth Bumb.
www.dtidthelp.wordpress.com
www.siddharthbumb.blogspot.com

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