Service tax point of taxation
This query is : Resolved
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.
please let me know that my contention is true or not and what happens if this service is covered under continuous service.
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.
(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.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR selection for salaries and capital gain less than L
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- ITR 2 Short Term gain & Long term gain
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Reporting Income under Section 44ADA
- ITR 1: Details for showing Exempt Income
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
