Bill of feb-2016 & march -2016, Other Topics

[Sanjay Vasava]

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

Posts / Replies

[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.

[Sanjay Vasava]

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.