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Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2011 At a time of payment service tax is not applicable but at a time of providing services serice tax is applicable .
Than service tax deducted or not on payment received befor service applicablity ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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24 September 2011 Notification No. 18/2011 – Service Tax the 1st March, 2011

(a) in case a taxable service has been provided before the change of rate,-
(i) where the invoice for the same has been issued and the payment received after the
change of rate, the point of taxation shall be date of payment or issuing of invoice,
whichever is earlier; or
(ii) where the invoice has also been issued prior to change in tax rate but the payment is
received after the change of rate, the point of taxation shall be the date of issuing of
invoice; or
(iii) where the payment is also received before the change of rate, but the invoice for the
same has been issued after the change of rate, the point of taxation shall be the date
of payment;
(b) in case a taxable service has been provided after the change of rate,-
(i) where the payment for the invoice is also made after the change in tax rate but the
invoice has been issued prior to the change of tax rate, the point of taxation shall be
the date of payment; or
(ii) where the invoice has been issued and the payment for the invoice received before
the change of tax rate, the point of taxation shall be the date of receipt of payment or
date of issuance of invoice, whichever is earlier; or
(iii) where the invoice has also been raised after the change of rate but the payment has
been received before the change of rate, the point of taxation shall be date of
issuing of invoice.

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