Effect in invoice-swachh bharat cess on continuous service
Querist : Anonymous
Option-1
Charge 14.50% on taxable value for the whole November 2015.
Option-2
Charge 14.00% on taxable value for the period 1st November to 14th November 2015 & 14.50% on taxable value for the period 15th November to 30th November 2015.
Please revert by considering CONTINOUS supply service provision.
Thanks & Regards,
Nikhil Mehta
Querist : Anonymous
Is there any problem in service tax audit in future? Can audit team raise query, if we issue two invoice for November only?
i.e. 14% on Basic as well as 0.5% on basic value. SBC is not cess on Basic service tax.
Eg. if service basic value is Rs. 50000/- then Service Tax @ 14% is Rs. 7000/- & SBC @ 0.5% is Rs. 250/-
In case of services covered by abatement
The effective rate of tax on all Abatement Services would be [14.5% * Effective Rate under Abatement Notification - 26/2012]. For example, the effective rate of tax on GTA service would be [14.5%*30%] = 4.35% (and NOT 4.2%).
SBC would be paid separately under a separate accounting code.
CENVAT Credit on SBC paid on Input Service will NOT be available as there is no corresponding amendment in the CENVAT Credit Rules, 2004, we will wait for amendments in CENVAT Rule.
Querist : Anonymous
You are right. But my Question is...
Is it possible to issue two different invoices to client for (1) the period 1st November to 14th November 2015 with rate of 14.00%(2) for the period 15th November to 30th November 2015 with rate of 14.50% ? Is there any problem in service tax audit in future? Can audit team raise query, if we issue two invoice for November only?
Read more at: https://www.caclubindia.com/experts/modify_message.asp?entry_id=1034872
1) Date of service completion,
2) Date of invoice issued &
3) Date of payment received.
If service completed on 30th October & payment received on 14th November and you issued invoice on 25th November then Service Tax % Should be 14% there are no need to charge SBC @ 0.5%.
If Service Completed on 30th October, payment will be receive after 30days but you have to issue invoice today then service tax will be 14% + SBC @ 0.5%.
If date of completion of service is after 15th Nov.2015 invoice is issued after 15th nov. 2015 but payment received before 15th of November 2015. service tax should be 14.05%.
Click here to login now
Similar Resolved Queries
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Difference between Date of Payment and Date of Deduction?
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- LIC maturity claim whether taxable
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- TDS AND ITR ISSUE
- GST Rate for Catering Services
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
