Bill of feb-2016 & march -2016

[Asked by Guest]

Dear Sir,

I have received some bill from service period of Feb-2016 & March - 2016. (Bill I.e JCB/Hydra and Tractors).

Contractor has made an invoice in current date & Submitted to me. Please explain how can pass this type of bill. Can i book the bill in this financial year??.

Please suggest.

Thanks & Regards,

Sanjay Vasava

[DR.MARIAPPAN GOVINDARAJAN]

Whether your query is for the payment of service tax? If it is so you have to apply the Point of Taxation Rules.

[YAGAY and SUN]

You can book these bills in their respective accounting head in this year or treat it as prior period expenses.

[Ganeshan Kalyani]

For services received in Feb and March but invoice not received, provison expense would have been accounted in your books. Now that you have received the bills you will account it in the current year but auditor will not allow the expense to claim in the current year as you would have already claimed the expense in previous year.

Dear Sir,

If auditor not allowed, What i do in this case??

Please suggest.

Thanks & Regards,

Sanjay Vasava

[Rajagopalan Ranganathan]

Sir,

The bill is to be booked by you on the date of payment of the invoice. As per rule 4A of Service Tax Rules, 1994 " Every person providing taxable service shall not later than thirty days from the date of completion of such taxable service or receipt of any payment towards the value of such taxable service, whichever is earlier, issue an invoice, a bill or, as the case may be, a challan signed by such person or a person authorized by him in respect of such taxable service provided or agreed to be provided. Action is to be initiated for delayed issue of bill by Central Excise Officer who has jurisdiction over service provider.

[Ganeshan Kalyani]

Auditor shall deny expense in current year because the provisonal expense was claimed in the previous year while computing income tax.

[YAGAY and SUN]

Making entries in prior period expense account shall be appropriate in this matter.

AI Summary

Point of taxation rules govern invoice timing for taxable services; delayed invoices affect tax point and expense recognition.
Point of Taxation Rules and Service Tax Rules require timely invoicing; delayed supplier invoices should be booked on payment or treated as prior-period adjustments if provision for the service was already made, and auditors may disallow re claiming expenses in the later year where they were previously provisioned.