Urgent......point of taxation rules

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2015 IF INVOICE RAISED ON 11.03.2015 AND PAYMENT RECEIVED ON 07.04.2015 THEN WHEN WILL BEDUE SERVICE TAX LIABILITY .

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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09 April 2015 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..

So, here, date of receipt would be the point of taxation. Tax is du to be paid on 05-05-2015. Rate of tax will be still 12.36% only.

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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09 April 2015 Also pls refer this on ICAI website:-

Clarification- No change in rate of Service Tax - (01-04-2015)
ICAI/IDTC/GST/2015 1st April, 2015
Clarification- No change in rate of Service Tax

Finance bill, 2015 has proposed to increase effective rate of Service Tax from 12.36% to 14%. It is wrongly reported in some quarters that the effective date of change in rate of Service Tax is 1st April, 2015. It is hereby clarified that the change in the rate of Service Tax will be effective from the date to be notified after enactment of Finance Bill, 2015.

In this regard relevant portion of D.O.F. No.334/5/2015-TRU dated 28th February 2015 is produced below:

“3.3 The Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015”.

Hence, it is worthwhile to mention that there is no change in the rate of Service Tax w.e.f. 1st April 2015.
CA. Atul Gupta
Chairman, Indirect Taxes Committee

https://icai.org/new_post.html?post_id=11476&c_id=219

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