29 November 2012
The negative list came in force from 1/07/2012. So if a person is providing services from 1/4/2012 then, what amt of services will be taxable? a) the total of services from 1/4/12 or b) the services served after 1/7/2012? Thanks in advance.
If the service provided by you has become taxable from 01.07.2012 then Rule 5 of Point of taxation rules, 2011 applies in your case. As per rule 5 of POT, 2011 the tax liability shall be determined as follows:-
i) if the invoice issued and payment made before the service become taxable - NO SERVICE TAX.
ii) if the payment is received before the service is taxable and the invoice is issued within 14 days from the date the service become taxable - NO SERVICE TAX.
iii) In all other case service tax would be leviable.
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