Service tax payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2015 Dear all
as per the point of taxation rule, can i pay service tax on receipt basis if the turnover is less then 50 lacs..

plz reply

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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15 April 2015 Yes. You have an option to pay Service Tax on receipt basis according to Point of Taxation Rules, 201.

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2015 sir what is point of taxation rule. and as per point of taxation rule is there any restriction to pay service tax on receipt basis, please explain it in details

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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15 April 2015 Please refer Point of Taxation Rules, 2012.
Rule 3 would give you more clarity.

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2015 Dear john sir
i have study point of taxation rule. but i am being confused in relu 3, 7, 10,
as per notification 13/2014. suppose if invoice issue on 10/4/2015 and payment received on 10/8/2015. in this case, receipt date will be consider for point of taxation. and ST payment will be deposited on 6/9/2015.
please tell me is this correct.

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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16 April 2015 See, basically, Rule 3 is the master rule. It says that an assessee is having an option to pay service tax on receipt basis. So, the base month for payment will be the date on which you receive the payment and accordingly, pay the Service tax on the 5 th pf the next month.
Ignore all other rules if this is satisfied.

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2015 Dear sir
even in FY 2015-16 the rule 3 is to be follow. and as per the rule 3 the invoice should be issue within one month of completion of service. i have follow Query for more clarity as given under below....
service completion date 10/4/2015
invoice issued date 15/4/2015
payment receipt date 10/7/2015

not please tell me as per this above Query given above that which date is to be consider for point of taxation and in case of partnership firm what will be the due date for ST payment...
your response is awaited please.

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2015 Dear sir plz reply my above Query.

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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23 April 2015 It will be 5th of August, the date of receipt of consideration if your turnover during the preceeding year is Rs. 50L or less.
If not, the due date would be 5th of May 2015( the date of invoicing, since not more than 30 days from the completion of provision of services)

Querist : Anonymous

Querist : Anonymous (Querist)

24 April 2015 Dear john sir
my Query is now seems to be resolved but tell me last point in the receipt basis suppose i have receipt payment on 10/7/2015,
what will be due date for ST payment whether 5/8/2015 or 5/10/2015.

note -: i am engaged in partnership firm

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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26 April 2015 Since yours is a partnership firm, payment of SvT is quarterly.
So, due date would be 05th October in case of 2nd quarter if paid in cash.
If paid electronically, 6th of October 2015.

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