Suppressing service tax liability

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AKSHAYA KUMAR PARIJA (Querist)
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02 May 2015 Dear Expert,

We are a commission agent & commission is our prime income. We registered under Clearing & forwarding agent service under Service Tax Act. In connection with F.Y 2014-2015 commission for the month of February & March 2015 has billed on dt.14.04.2015 including Service Tax & deposited the Service Tax liability on dt.02.05.2015. The value of Commission have taken income provision in the F.Y 2014-2015.

Am I make any mistake under Service Tax point or any other point of view ?

Am I suppressing Service Tax liability in the F.Y 2014-2015 & deferred to F.Y 2015-2016 ?

Please clarify the matter.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 May 2015
If you are raising the invoice once in two months regularly as per contract terms then it is not deferred.
In case of continuous supply of service, which is determined periodically on the completion of an event and requires the receiver of service to make any payment to the service provider, the date of completion of each such event as specified in the contract is deemed to be the date of completion of provision of service [Rule 3 in Proviso of Point of Taxation Rule, 2011].
See the provisions of point of taxation Rules.
Point of taxation is determined on the basis of earlier of following events (Rule 3) :- a) The time when the invoice for the service provided or to be provided is issued OR b) Where the person providing the service, receives a payment Provided that the invoice has been issued within 30 (45 in case of banking services) days from the completion of provision of Service.If invoice has not being issued with in stipulated time then POT shall be the date of completion of provision of Service.

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