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Point of taxation

CA Devender Chauhan (Group Financial Accountant) (1526 Points)

07 January 2012

Dear Friends,

If a Company have rendedred services to its clients in the month of March 2011 but the invoices are issues and the payment is received in the month of july when the point of taxation rules 2011 in force, what will be the point of taxation in this case?

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4 Replies

Divya K S (CA) (289 Points)
Replied 07 January 2012

Since, during March 2011 service tax liability was based on realization basis, the services rendered in March 2011 would not have taxed in that month. Further when the payment is realised in the month of July 2011, it is taxable in that month itself.

Kindly correct me, if i am wrong.

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CA Devender Chauhan (Group Financial Accountant) (1526 Points)
Replied 07 January 2012

Originally posted by : Divya K S
	Since, during March 2011 service tax liability was based on realization basis, the services rendered in March 2011 would not have taxed in that month. Further when the payment is realised in the month of July 2011, it is taxable in that month itself. Kindly correct me, if i am wrong.