shibsankar (Asst. Manager - Accountants) (119 Points)
04 December 2015One of our related party( Out Side India) raised an invoice to us on 30/10/2015, We accounted the invoice on 20/11/2015 and paid the service tax on import services @ 14%. We made the payment to the vendor on 24/11/2015. My query is do i need to pay swachh bharat cess on the same?
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 04 December 2015
Yes, point of taxation for payment of service tax on RCM/ import of service is the date of payment. Therefore, you have to pay swachh bharat cess on that.
Sarvesh Raikar
(Practicing Chartered Accountant)
(47 Points)
Replied 04 December 2015
As per rule 5 of POT rules, in case where payment has been made AND invoice is raised BEFORE the service becomes taxable i.e, prior to 15th Nov, there is no liability of SBC.
In case where payment has been reveived before the service became taxable AND invoice is raised within 14 days i.e, 29th Nov, even then service tax liability does not arise.
As per above you will have to pay SBC.
CMA Dipak joshi
(Cost Accountant)
(488 Points)
Replied 04 December 2015
legaly no need to pay SBC on services recived prior to 15th Nov 2015. Prior to 2012, point of taxation rules were used for determination of rate of tax as well as date of payment. In the budget of 2012 goverment has inserted section 67A, which say's that the tax is payable at rate preveling at the time of provision of service. After insertion of section 67A, point of taxation rules are no more relevent for determination of rate of tax and only useful for determination of due date of tax payment. Please read sectio n 67A
Uday Krishna Dussa
(Article assistant)
(59 Points)
Replied 05 December 2015
Yes,the point of taxtion for payment of service tax on import of service is date of payment.
So,in your case date of payment (24/11/2015) is more than date on whitch SBC (15/11/2015) applicable.Therefore, you have to pay SBC on that.
Manikandan
(Asst. Manager-Accounts)
(23 Points)
Replied 05 November 2016
One of my vendor (from Thailand) has completed Installation & commissioning job and raised invoice to us in USD without service tax. can any one help me how to book this invoice. whether Service tax and TDS is applicable. and %.
CAclubindia
