Pot rules-urgent

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2011 Who are required to follow POT rules from 1/4/2011 & from 1/7/2011??What`s Difference???

Further What in case of Old bills pending on 1/7/2011 for previous periods,whether the same are covered and required to deposit tax on due amount?? or for previous periods we can deposit tax on receipts basis????

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

10 November 2011 From 1/4/2011 to 30/06/2011 transitional provisions can be opted meaning thereby cash system can be followed for payment of service tax.
For old bills up to 31/3/2011 cash system can be followed.

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2011 Thanks but Some required to opt from 14/2011 & some from 1/7/2011, what is the category for this two separate dates??

PAWAN KUMAR

PAWAN KUMAR (Expert)

10 November 2011 Before 01.07.2011 the liability shall arise on receipt of payments however after 01.07.2011 the same shall be followed if you are individual taxpayer. If you are service receiver liable for making payment, liability shall be arised only after making the payment.

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2011 That means Individuals/ Prorietor can opt for paying Service Tax on Receipt basis in future also,??
I think only specified Professionals are only exempt from paying tax on receipt basis not All Individuals Please clarify???

PUNEET GOYAL

PUNEET GOYAL (Expert)

11 November 2011 As per rule 1 of point of taxation rule, 2011 these rules shall come into effect from 01.04.2011. However, rule 9 of said rules give an option to the assessee to pay service tax on payment basis upto 30.06.2011. In other words, assessee may opt either to pay service tax on accrual basis from 01.04.11 or from 01.07.11.

Moreover, as per rule 7(c) of said rules, for specified profession service tax is payable on payment basis.

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