Levy of st reverse charge on bill or service date

Save Share

This query is : Resolved

phani ram (Querist)

12 July 2013 sir,
my client had provided a service on june but he had raised bill on 2nd july, he had not charged service tax to the bill because service is provided in june
please tell me the solution

RENGARAJ R.K

RENGARAJ R.K (Expert)

12 July 2013 Dear Sir,
What is the name of the service provided and status of the service provider and service receiver?

The answer will be sent based on your reply.

RENGARAJ R.K

RENGARAJ R.K (Expert)

12 July 2013 Dear Sir,
What is the name of the service provided and status of the service provider and service receiver?

The answer will be sent based on your reply.

phani ram

phani ram (Querist)

12 July 2013 both service provider and service receiver are companies and the service is maintanance of vehicles

Ganeshbabu K

Ganeshbabu K (Expert)

12 July 2013 No reverse charge, if service provided prior to 1-7-2012

1)In case of some services, reverse charge mechanism is applicable w.e.f. 1-7-2012 i.e. service tax is payable (partly or wholly) by service receiver..

2)In view of section 67A (which is effective from 28-5-2012), service tax will not be payable by service receiver under reverse charge mechanism, if service was provided prior to 1-7-2012, even if payment is received later.

3)This will be so even if invoice was issued after 1st July 2012.

[Note that Point of Taxation Rules cannot override provisions of section 67A].

Thanks & regards
Ganesh babu k

Message likes : 1 times

RENGARAJ R.K

RENGARAJ R.K (Expert)

12 July 2013 Agreed. Moreover, the service of "maintenance of vehicles" is not in reverse charge list. So, there is no liability for the service receiver, even if it is july 12.

My doubt is why the service provider as a company has not collected service tax for his bill of june raised in july.

The author of this query has to answer.

Message likes : 1 times

phani ram

phani ram (Querist)

12 July 2013 sir
will the provision of service tax reverse charge stands in case of normal service tax.
mean to say in this case the the bill is not liable for service tax

phani ram

phani ram (Querist)

12 July 2013 one more doubt
toll charges collected by the private authority (for travelling on the bridge)is liable for service tax

phani ram

phani ram (Querist)

12 July 2013 my client told me that vehicles liable for road tax are exempted from service tax on their vehicle maintenance

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now