POINT OF TAXATION ??

[abbas mukhi]

SIR,

OUR COMPANY HAS CONTRACT WITH OTHER PARTY FOR RENTING OF IMMOVABLE PROPERTY FOR PERIOD OF 30 YEARS

AS PER AGREEMENT WE HAVE 'RIGHT TO RECEIVE' ADVANCE PAYMENT FOR THE 'PARTICULAR PERIOD'

BEFORE STARTING OF PARTICULAR PERIOD WE ARE 'ISSUING REMINDER' TO PARTY FOR 'REMITTANCE OF PAYMENT'

ON RECEIVING AMOUNT WE PREPARE SALE ACCOUNT FOR BOOKING INTO ACCOUNTS

WHAT IS POINT OF TAXATION FOR SERVICE TAX IN ABOVE TRANSACTION ??

AI Summary

Company Seeks Clarification on Taxation Point for 30-Year Property Rental: Payment Receipt or Invoice Issuance? A company has a 30-year contract for renting immovable property and seeks clarification on the point of taxation for service tax. The company has the right to receive advance payments before the rental period begins and issues reminders or demand notes for payment. The main query is whether the point of taxation is the date of payment receipt or the invoice issuance. Responses indicate that the point of taxation is the date of receipt of payment or invoice issuance, even if payment is not received. The discussion also touches on whether the service qualifies as a continuous supply of service.