Date of entry in the books
Date of payment credited into bank account
Earlier of (a) and (b)
Date of filing of return
Answer is Wrong!
Answer is Right!
The correct answer is: C. Earlier of (a) and (b).
The date of receipt of payment is the date on which the payment is received by the seller. This can be the date on which the payment is entered into the seller’s books, the date on which the payment is credited to the seller’s bank account, or the earlier of these two dates. The date of filing of return is not relevant to the date of receipt of payment.
Here is a more detailed explanation of each option:
- Option A: Date of entry in the books. This is the date on which the seller records the payment in their accounting records. This date is not necessarily the same as the date on which the payment is received. For example, if the seller receives a payment on January 1st, but does not record it in their books until January 3rd, then the date of entry in the books would be January 3rd.
- Option B: Date of payment credited into bank account. This is the date on which the payment is credited to the seller’s bank account. This date is usually the same as the date on which the payment is received, but it is not always the case. For example, if the seller receives a payment by check, it may take a few days for the check to clear and be credited to the seller’s bank account.
- Option C: Earlier of (a) and (b). This option is the correct answer because it takes into account the fact that the date of receipt of payment can be either the date on which the payment is entered into the seller’s books or the date on which the payment is credited to the seller’s bank account.
- Option D: Date of filing of return. This option is incorrect because the date of filing of return is not relevant to the date of receipt of payment. The date of filing of return is the date on which the seller files their tax return with the government. This date is usually after the date of receipt of payment.