25 November 2015
Situation - I Both Invoice issued and payment received after (notified date after enactment of bill)
Rate of Tax - Situation I
Service Tax @ 14% plus additional SBC or increased rates (for alternative rate of services) based on issue of invoice or receipt whichever is earlier.
Situation - II
Payment received before (notified date after enactment of bill) and invoice issued after (notified date after enactment of bill)
Rate of Tax - Situation II
Service Tax @ 14% plus additional SBC or increased rate (for alternative rate of services) as the case may be as prevailing on date of issue of invoice.
My Query : -
I would like to raise INVOICE against a Service Provider based on any of the two situations shown above. I would like to clarify that we are receiving the payment vide cheque date 13th November 2015 and Invoice is to be raised on the “basis of payment received”.
Please clarify whether it is possible to avoid SBC (0.5 %) for this “change over period” through INVOICE GENERATION “Date”?
25 November 2015
Charge of Service tax is depend on 1) Date Of completion of service, 2) Date of issuing invoice & 3) date of Receiving payment.
while charging service tax % you have to consider only 2 condition. i.e. if your service is completed on 15th October 2015 payment received on 14th November but invoice issued on 16th November then service tax should be 14% only.
26 November 2015
Good. But as said in the last part of answer "November 16th, Can it be on or before "November 28th"? That is generation of Invoice with only 14% ST and no SBC.
26 November 2015
Service Completed before 15th November, & Payment received before 15th November but invoice issued after 15th November then Service tax @ 14% , there are no requirement to charge SBC.
CAclubindia
