Point of taxation

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Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2012 is it true that as per point of taxation rules,2011 w.e.f. 1/4/11 service tax is to be paid on billing basis whereas earlier it was on the basis of receipt of payment of taxable service

Aditya Maheshwari

Aditya Maheshwari (Expert)
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13 January 2012 Yes it is true now service tax payable on accrual basis from 01.07.2011. However certain professionals like CA, CS, archtects are kept outside the purview of accrual basis of taxation.

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2012 is accrual basis is also applicable on credit of service tax on input service. i mean to say can we take credit without payment of bills raised on us.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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23 January 2012 Yes u can take credit without payment of bills but u have to pay the creditor within 3 months otherwise u have to reverse tge service tax credit.

Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2012 can you plz send me the relevant rules regarding the 3 months payment to creditors

Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2012 can you plz send me the relevant rules regarding the 3 months payment to creditors

Aditya Maheshwari

Aditya Maheshwari (Expert)
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24 January 2012 see this link
https://www.cbec.gov.in/excise/cx-act/notfns-2k11/cx-nt2k11/cent13-2k11.htm
Provided further that in case the payment of the value of input service and the service tax paid or payable as indicated in the invoice, bill or, as the case may be, challan referred to in rule 9, is not made within three months of the date of the invoice, bill or, as the case may be, challan, the manufacturer or the service provider who has taken credit on such input service, shall pay an amount equal to the CENVAT credit availed on such input service and in case the said payment is made, the manufacturer or output service provider, as the case may be, shall be entitled to take the credit of the amount equivalent to the CENVAT credit paid earlier subject to the other provisions of these rules:

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