Service tax payment on receipt basis

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Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2015 Dear all
if in FY 2015-16 the bill is issued on 5/4/2015
payment has receipt for the same is on 10/7/2015, as per point of taxation rule on receipt basis. which date is to be consider for point of taxation whether 5/4/2015 or 10/7/2015. and also tell me what will be the ST payment due date for partnership firm.

plz reply it's urgent..

CA Hemant Bhathad

CA Hemant Bhathad (Expert)

16 April 2015 If your turnover has not exceeded 50 lac previous year then firm can opt to pay tax on receipt basis i.e 10/7/15 up to 50 lac turnover of taxable services in current year
otherwise in all case Point of taxation will be 5/4/15(whichever is earlier)

due date of ST payment is Quarterly 6th of next month to quarter if online paid for ind and firm

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2015 Dear hemant sir
if ST payment is receipt within six month then date of payment will be for point of taxation rule. and if payment not receipt within six month then date of invoice will be for point of taxation rule... is my view correct or not.

please clarify..

CA Hemant Bhathad

CA Hemant Bhathad (Expert)

16 April 2015 Your view is correct if services covered in receipt basis

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2015 Dear Hemant sir
first of all thanks very much for replying my Query.
sir. suppose if the debtors has not made payment within six month hence date of issuing invoice will be consider for point of taxation rule. in my case invoice date is 5/4/2015. but till 5/10/2015 the debtors has not made payment. in this case 5/4/2015 is to be consider for point of taxation rule hence due date for ST payment will be 5/7/2015 (partnership firm) but we have not paid ST till 5/10/2015, in this case will i have to pay interest...

CA Hemant Bhathad

CA Hemant Bhathad (Expert)

16 April 2015 First I am considering your year 2014
Yes you have to pay interest

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2015 Dear sir
this six mount receipt rule is as per rule 7 for under reverse charge. but my service does not cover reverse charge. in this case will have to follow the rule 3, please correct me if i am wrong. but as per rule 3 the invoice should be issue within one month.
i have following situation as under given...
service completion date 15/4/2015
invoice issue date 16/4/2015
payment receipt date 10/7/2015

as per the rule 3 invoice issue date is to be consider for point of taxation.
but there is another rule in point of taxation if payment is receipt within three mount then payment date will be consider for point of taxation...

please solve my Query....

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