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Service tax applicability on previous year transaction

CA Ankur Goel (sr. executive) (133 Points)

20 December 2011

By Notification no. 3/2011, dated 1st march 2011

service tax applicable on the transactions provided from 1st April 2011 on DEEMED TO BE PROVIDED BASIS.

That means on DUE BASIS as soon as bill rised.

My query is " if we provide any service in the previous year 2010-11, then we have to pay the service tax on that transaction on

receipt basis or.......

Please clarify me.........

Thanks

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3 Replies

Bhanu Prakash Rao (Think Beyond Stay Ahead...!) (1064 Points)
Replied 20 December 2011

As this provision effective from 1st April, 2011 there will not be retrospective effect and same is not there in the Notification no. 3/2011, dated 1st march 2011

its better you rise query in experts forum.

Notification no. 3/2011, dated 1st march 2011

https://www.cbec.gov.in/ub1112/st03-2k11.pdf

CA Prabhat Gupta (Manager (Indirect Taxes)) (821 Points)
Replied 20 December 2011

Mr. Ankur,

Please refer to Point of Taxation Rules, 2011 issued through Notification No. 18/2011 - ST dated 01.03.2011.

Further refer to Notification No. 25/2011 - ST dated 31.03.2011 containing amendments to Point of Taxation Rules, 2011.

It states that, "Provided that services for which provision is completed on or before 30^th day of June, 2011 or where the invoices are issued upto the 30^th day of June, 2011, the point of taxation shall, at the option of the taxpayer, be the date on which the payment is received or made as the case may be."

Hence an option is available to you to pay Service Tax on Receipt basis.

The link is given Below:

https://www.servicetax.gov.in/st-notfns-home.htm

Gajraj Yadav (Ass. Manager (Fin)) (23 Points)
Replied 22 December 2011

HI! All,

My query regarding applicability of VAT/Sales Tax on Rent of Fixed Assets (Computers).

We have purchased Computer and deploy on Rental Basis. Should we charge Service Tax or VAT. Please reply urgently refering Notification in support of your reply.

Regards

Gajraj Yadav