Suppose:
Service is provided on 27 February 2018
But invoice is issued on 1 April 2018 (I.e.after 30 days of service and also in next accounting year)
What will be the treatment?
The time of supply of services shall be the earlier of the following dates:-
(a) Thedate of issuing invoice (or the last day by which invoice should have been issued) OR (b) The date of receipt of payment -whichever is earlier
If the supplier of taxable service receives an amount up to Rs. 1000 rupees in excess of invoice amount, the time of supply for the extra amount shall be the date of issue of invoice (at the option of the supplier).
For clauses (a) and (b)- The supply shall be assumed to have been made to the extent it is covered by the invoice or the payment (as the case may be).
For clause (b)- the date of receipt of payment shall be earlier of- (i) The date on which he entered the payment in his books OR (ii)The date on which the payment is credited to his bank account.
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