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Course name-BSBECO-201 Accounting Tax

ABC Ltd provided agency services to Mr. X on March 10, 2016 for Rs. 50,000. The invoice was issued on March 20, 2016. ABC Ltd received payment via a cheque dated March 12, 2016, which was deposited on March 15, 2016. According to taxation rules, the point of taxation is the earlier of the date of payment entry in books (March 15, 2016) or credit to bank account (March 25, 2016). Therefore, the point of taxation is March 15, 2016.

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45 views1 page

Course name-BSBECO-201 Accounting Tax

ABC Ltd provided agency services to Mr. X on March 10, 2016 for Rs. 50,000. The invoice was issued on March 20, 2016. ABC Ltd received payment via a cheque dated March 12, 2016, which was deposited on March 15, 2016. According to taxation rules, the point of taxation is the earlier of the date of payment entry in books (March 15, 2016) or credit to bank account (March 25, 2016). Therefore, the point of taxation is March 15, 2016.

Uploaded by

Navdeep Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Course name- BSBECO-201

ACCOUNTING TAX
instance 23: (RTP) ABC Ltd. provided agency manual services to Mr. X on tenth March, 2016 for
`50,000. The invoice for the equal became issued on twentieth March, 2016. ABC
Ltd. received the rate in competition to the said invoice on fifteenth March, 2016 vide cheque
dated twelfth March, 2016. The access for the receipt of price became made within the books
of money owed on 15th March, 2016 itself. however, the quantity was credited inside
the financial institution A/c on twenty fifth March, 2016.

determine the factor of taxation inside the given case.

solution:
inside the given case, because the bill is issued within the prescribed period of 30 days from the
date of entirety of provision of service, the factor of taxation, as in keeping with rule three of
the element of Taxation regulations, 2011, shall be the date of invoice (i.e.
20.03.2016) however charge has been obtained on 15.03.2016, POT shall be 15.03.2016.

As according to rule 2A, date of fee is the :-

(1) date on which the price is entered inside the books of account (i.e. 15.03.2016) or


(2) date on which the price is credited to the financial organization account of the man or
woman vulnerable to pay tax (i.e. 25.03.2016)
whichever is in advance, i.e. 15.03.2016.

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