12 July 2013
sir, my client had provided a service on june but he had raised bill on 2nd july, he had not charged service tax to the bill because service is provided in june please tell me the solution
12 July 2013
No reverse charge, if service provided prior to 1-7-2012
1)In case of some services, reverse charge mechanism is applicable w.e.f. 1-7-2012 i.e. service tax is payable (partly or wholly) by service receiver..
2)In view of section 67A (which is effective from 28-5-2012), service tax will not be payable by service receiver under reverse charge mechanism, if service was provided prior to 1-7-2012, even if payment is received later.
3)This will be so even if invoice was issued after 1st July 2012.
[Note that Point of Taxation Rules cannot override provisions of section 67A].
12 July 2013
Agreed. Moreover, the service of "maintenance of vehicles" is not in reverse charge list. So, there is no liability for the service receiver, even if it is july 12.
My doubt is why the service provider as a company has not collected service tax for his bill of june raised in july.
12 July 2013
sir will the provision of service tax reverse charge stands in case of normal service tax. mean to say in this case the the bill is not liable for service tax
CAclubindia
