Service tax point of taxation

This query is : Resolved

ARPITA VINODKUMAR MEHTA (Querist)
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07 November 2014 service is provided from june to till date but invoice is not issued till now. then according to my knowledge point of taxation will be date of completion of service if invoice is not issued within 30 days. and now from june to till date service tax is required to pay with interest upto today.
please let me know that my contention is true or not and what happens if this service is covered under continuous service.

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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07 November 2014 Under the Point of Taxation Rules, the liability to service tax arises on:

(a) Date of Completion of services rendered or
(b) If invoice is issued within 30 days of the rendering of service, then the date of invoice will be the date of completion of service (otherwise, it is the date of completion of service)
or
(c)Receipt of consideration, either after completion or as advance
Whichever is earliest.

From your query it is not clear whether you have received any amount for services rendered. Secondly, the liability for tax arises, in case of non-corporate assessees, every quarter and for corporate assessees monthly. Assuming you are a non corporate assessee, you have to determine the value of services rendered in June, and rendered between July to September. The amount of tax should be paid by 5th July for June and 5th October for September quarter.

The Rule for continuos Supply of service has been merged with Rule 3 and therefore there is no differnce in tax liability in case of Continuos Service.

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