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What is the point of taxation for new service tax rate 14%

M.R.Marimuthu (Tax Consultant) (64 Points)

18 June 2015

what is the point of taxation for the followimg conditions.the contrat was entered in june 2012.The work was completed in may 2015.The invoice is raied in june 2015.

what is the point of taxation anybody can explain

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9 Replies

ROSHAN PAUL JOSEPH (CA Final student) (311 Points)
Replied 18 June 2015

Please mention the date of invoice and date of receipt of payment

ACCOUNTANT (Student) (559 Points)
Replied 18 June 2015

Point of taxation is the time of receipt of FEES or DATE of Completion of Work Whichever is earlier., if fee is received before contract completion such date., or the DATE of INVOICE or date of completion of work.If date of Invoice is unvailable, date of entering of contract.,

Pl do correct me on mistaking.,

ROSHAN PAUL JOSEPH (CA Final student) (311 Points)
Replied 18 June 2015

A summary of the applicable rate in accordance to Rule 4 is provided below:

Sr. No.	Provision of an activity	Point when the Invoice is raised	Point when the payment is received	Point of Taxation	Rate of S.T.
01.	Before rate change	After rate change	After rate change	Date of invoice or payment which is earlier	14%
02.	Before rate change	Before rate change	After rate change	Date of invoice	12%##
03.	Before rate change	After rate change	Before rate change	Date of payment	12%##
04.	After rate change	Before rate change	After rate change	Date of payment	14%
05.	After rate change	Before rate change	Before rate change	Date of invoice or payment which is earlier	12%##
06.	After rate change	After rate change	Before rate change	Date of invoice	14%

CMA Poornima Madhava (CMA) (13097 Points)
Replied 18 June 2015

So in this case, provision of service is may 15 and invoice raised in june 15, so if payment for the same is also made in june or later, than 14% but if payment is received before june 15, then 12.36%

Sanjay Acharya (Accounts Executive) (23 Points)
Replied 19 June 2015

Dear Sir,

we are service provider, service provided to Maharasthra State, material is not ours we are providing only servies for material, service tax is applicable on value 40% 0r 100%?

CA. Ankit Chandrakar (chandrakar.ankit@gmail.com) (1082 Points)
Replied 19 June 2015

Given your conditions, if payment was made prior to 01.06.15, the rate will be 12.36% BUT if the payment has been made on or after 01.06.15 the rate shall be 14%.