I have a querry . We are an outdoor advertisement company . So far we pay service tax based on collection basis . Ie we raise the bill for exmaple in april 2011 and we will receive the payment only after 3 to 4 months . When we receive the money against that bill we use to pay the service tax during that quarter's collection .
But today some one told me that from 1st of June 2011 onwards , we need to pay the service tax on the basis of billing and not on the basis of collection .
Can someone help me on this with an answer whether it is on collection mode or on bill mode .
10 May 2011
The date is 1st July. New Point of Taxation rules have been notifed. Please read article in article section on FA 2011 - Analysis where the POTR is also discussed in detail. In furture the invoicing would be the taxable event in normal circumstances.
CAclubindia
