I have received advance rent for the period from 01/04/2012 to 30/09/2012. am i supposed to pay the same on receipt or when it becomes due i.e. in the quarter of June and September respectively? Any inputs will be highly appreciated.
30 March 2012
As per Rule 3 of Point of Taxation Rules, 2011 services shall be deemed to be provided on receipt of payment or completion of services whichever is earlier.
And as per rule 6 of Service Tax Rules 1994 you are required to pay service tax on 5th or 6th of the month following the month or quarter in which services deemed to be provided as the may be.
Thus you are required to pay service tax on on receipt of advance payment.
Please read rule 4 of Point of Taxation Rules, 2011 for rate of service tax to be taken (either 10% or 12%)
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