As we know, Service Tax Point of Taxation Rules changed from 30/06/2011. Earlier it was on receipt basis and now it is the earliest of receipt, provision of service and invoice subject to the fact that if invoice is issued w/n 14 days from date of provision of service, then date of invoice if date of receipt is not earlier.
Now, the question that I want to ask is what if I've raised an invoice and provided service in May 2011 but the receipt is pending even today. Since at that time, point of taxation was receipt basis, it definately would not be charged in that quarter. However, will it be deemed to be charged on 1st July or will it only be charged when the amount is received by the provider?
CAclubindia
