04 July 2011
Dear All, Budget 2012 come out with the payment of service tax on booking (not on receipt basis). I want to know the 1) Date of Applicable? 2) On which services applicable? 3) What to do on input credit? 4) How to treat the bills raised in previous period not received? Thanks
05 July 2011
1) It is applicable from 1 July 2011 2) on all output services (exceptions are there for certain services provided by individual and firms, import and export of service) 3) input credit can be taken on receipt of invoice provided payment is made within 3 months by service recipient 4) bills raised prior to 1 July 2011 not covered by new rules.
Pls refer to Point of Taxation Rules, 2011 implemented vide notification 18/2011 - ST for complete rules.
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