Point of taxation

Payment of Service Tax is on Accrual Basic.......

FA 2011 has introduced point of taxation rules which says ST is levied on accrual basis

I thnk payment of Service tax is on the basis of Receipt

Taxable event and the levy remains the same even under the Point of taxation. Coming to the collection part, it is the earliest of the following

1. Fourteen days from the date of providing the service
2. Date of receipt of any money
3. Date of invoice

I agree with Pravin..

hey Tripti, plz dont confuse Ms.Warekar, she is asking whether it is on receipt basis or bill basis, tell her direct ans, plz dont confuse her, i didnt mean that to point out u, but wanna help to her, thats it nothing else.

yes it is on accrual basis from 1st July 2011 except exclusions specifically referred in the notification. shipping business is not among the exclusions so it is on accrual basis.

but i want some views of industry people whether we can continue to avail Service Tax input on payment basis while Service tax liability will be of course on accrual basis bcz thz will be easy to maintain.. further if input is also taken on accrual basis it is difficult to keep track of this as ALL service tax bills do not come and accounted before 5th of next month to arrive at accruate figure.

Experts plz share your view on this.