| Originally posted by : Gagan Sahni | ||
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Sir, Sir, Service tax recd on rent in advance for the month of April, 2011 in March, 2011 as per agreement. When the same is to be deposited i.e. in march, 2011 or April, 2011. Will it make any difference if bill is not issued in March 2011 As per the latest notification no.18/2011 dated: 01.03.2011 vide Para no.3 (b) which shall come into force on 01.04.2011 if the service provider issue an invoice or receives a payment, the service Tax to the extent covered by the invoice or the payment made thereof, be deemed to have been provided at the time the invoice was issued or the payment was recd, as the case my be which ever is earlier. Explanation.- For the purposes of this rule, wherever any advance, by whatever name known, is received by the service provider towards the provision of taxable service, the point of taxation shall be the date of receipt of each such advance Will I be perfectly write to deposit the service tax in April, 2011, although recd in advance in the month of march,2011 as the notification is effective from 01.04.2011 and does not cover any service tax recd prior to 01.04.2011 i.e. during F.Y.2010-11. Please give your considered opinion. |
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its an advance only and if there is no forefeiture clause then u have to book it only against rent of april in april, as it may happen that service may discontinue due to any or various reasons, and advance may be called back by the payee.
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