16 March 2013
POT determines only the time when the liability shall arise, whereas section 67A states the rate as on date of rendering of services. The same will be more clear from the example given below: Suppose, Service is provided on 25-Aug-2012( ST rate- 12%) Invoice is issued on 20-Sep-2012(ST rate-14%) & no payment has been received Now, As per POT Rule 4, The POT shall be on 20-Sep-12(i.e. payable on 5/6th Oct), but the rate for the same shall be taken as 12%(as per section 67A).
16 March 2013
Thank you, very much sir... So, what it means is that as per rule 4, eventhough there is change in rate, POT has to be decided by permutting DOP and DOI. But rate is as on the date of provision. But in rule 5, new levy, service tax is provided before service comes into tax. So, naturally will the service be taxed at 0%. Please help me with this sir.
CAclubindia
