Suppose a co-operative society raises a monthly bill of rent: It raises the monthly bill of Sept. 12 in Oct. 12. (Bill date is 05-10-2012). The following entry is made in Oct. 12:
Party...........DR To rent income...............CR To service tax payable.......CR (Bill...for Sept. 12)
Now the service tax will be paid during 1-5 Nov. 2012.
Is this OKAY considering the latest Point of Taxation Rules of the Service Tax?
12 October 2012
Yes it is OK. as POT is date of bill or payment... As here date of bill is in Oct, payment ought to be made in Nov. However as these services fall in continous supply of service we need to see the event / period as per agreement when payment becomes due. If as per agreement the bill is to be raised in OCt for services of Sept, then no issue...
CAclubindia
