Budget amendments - POT rules - CA

Queries 607 views 1 replies

Hello

Under the existing Point of Taxation Rules, 2011,  Point of taxation for a CA firm is on receipt basis.

There is a change in effective rate of tax from 10.3% to 12.36%.

As per the proposed amendments and notification no. 4/ 2012 dated 17th March 2012, cash basis is available for assessees having taxable turnover of less than 50 lakhs.

My query is what is the effective rate of tax applicable when

1. service is rendered by the CA before March 31, 2012 and

2.invoice is raised before March 31, 2012.

3. the payment is received after April 5, 2012

For above purposes,  please consider the taxable turnover of CA firm as exceeding 50 lakhs per annum.

Awaiting replies

Regards

Manju Navandhar

 

Replies (1)
If the invoice had been issued within 14 days from d date of completion of service, then the point of taxation in d present case would be the date of invoice. And the applicable rate of service tax payable to the govt will be 10%..


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