Reverse charge on security service`

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2013 Suppose a company have received security service in June'12 and the bill for the same is raised in the month of july'12. whether the company is required to pay his portion of service tax on the bill which is raised in july.
As the notification no 30/2012- S.T. came into effect from 1st July 2012.

Ganeshbabu K

Ganeshbabu K (Expert)
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05 September 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. However, to avoid controversy, it is advisable to date invoice prior to 30-6-2012

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

Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2013 thanks ganeshbabu..

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