Point of taxation for part payments under rcm

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Nagaraja S Hegde (Querist)
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08 July 2015 HI,One of our clients received the invoice in the month of may dated 2-5-2015 from transportation agency (GTA) for Rs 145600.Our Client made the payment of Rs 100000 on 26-5-2015,and remaining amount of Rs 45600 ON 6-6-2015.My query is, what rate of Service Tax is applicable??is it 12.36% or 14%, or 12.36% on 100000 and 14% on 45600?????

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 July 2015 12.36% applicable on entire value.

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Nagaraja S Hegde

Nagaraja S Hegde (Querist)
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08 July 2015 Thank U sir,But can i get the reason why 12.36% should be charged,because POT for RCM services is the date of payment made if the payment made within 3 months..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 July 2015 The point of taxation(rule 4) for change in rate of service tax, as invoice has been issued and service rendered before 31st May old rate only applicable.

Nagaraja S Hegde

Nagaraja S Hegde (Querist)
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08 July 2015 But Rule 7 has overriding effect on Rule 4 no sir?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 July 2015 Rule 7 will not override Rule 4.

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Nagaraja S Hegde

Nagaraja S Hegde (Querist)
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08 July 2015 Thanks a lot sir :)

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