Point of taxation

Dear Rachita,

As per Point of Taxation Rules...the Point of Taxation is the date of provision of service. but  if the invoice is raised or payment is recd before the provision of the service, then the PoT will be the Date of the Invoice / or rcpt of the payment. hence in Q1 the PoT is 28/03/2012 and in Q2 28/3/12

Ankit

yua..bt d ans is 5.4.12 in both the cases...according to ajay jain sir's qustns on his respected website

Dear Rachita,

as far as my knowledge goes.....

As per rule 3(b) if invoice is raised or pymt is recd bef the DoService then the date  of Invoice/payment

and for the second question 3(a) says that the PoT is the date of prov. of service.

there may be some mistake in the question. have you confirmed it properly?

yua..maybe there is a mistake from their side

possible...but wat was d answer according to u?

d same u told...28.3.12

Hey Rachita,

From your query i undersatnd it is in relation to determination of  POT when there is "Change in effective rate of Service Tax" i.e.  Rule 4 of Point of Taxation Rules, 2011.

In both question POT will be 5/4/2012 as out of three events two events are falling in month of April.

Rule 3 is general provision and Rule 4 is specific and deals with "Change in effective rate of Service Tax". both are different.

Ok...then it may be a mistake....

what does rule 4 xctly tels???
this cud nt b d reason dat out of 3, 2 dates lie in april...

rule 4(b) : Invoice and Payment :afetr the change in rate the PoT is the DoI

Pymt bef change in rate and Inv after change in rate: DoI

it may be a possibility. but according to me, if such change of rate is not mentioned in the quest. u should not assume it....but if it was mentioned then, Pradeep is right.

Please find extract of Rule 4 of POT for your reference.

4. Determination of point of taxation in case of change in effective rate of  tax -  Notwithstanding anything contained in rule 3, the point of taxation in cases where there is a change in effective rate of  tax in respect of a service, shall be determined in the following manner, namely:-

(a)     in case a taxable service has been provided before the change in effective rate of tax,-

(i)   where the invoice for the same has been issued and the payment received after the change in effective rate of  tax, the point of taxation shall be date of payment or issuing of invoice, whichever is earlier; or

(ii)  where the invoice has also been issued prior to change in effective rate of  tax but the payment is received after the change in effective rate of  tax, the point of taxation shall be the date of issuing of invoice; or

(iii)  where the payment is also received before the change in effective rate of  tax, but the invoice for the same has been issued after the change in effective rate of  tax, the point of taxation shall be the date of payment;

(b)  in case a taxable service has been provided after the change in effective rate of  tax,-

(i)  where the payment for the invoice is also made after the change in effective rate of  tax but the invoice has been issued prior to the change in effective rate of  tax, the point of taxation shall be the date of payment; or

(ii)  where the invoice has been issued and the payment for the invoice received before the change in effective rate of  tax, the point of taxation shall be the date of receipt of payment or date of issuance of invoice, whichever is earlier; or

(iii)  where the invoice has also been raised after the change in effective rate of  tax  but the payment has been received before the change in effective rate of  tax , the point of taxation shall be date of issuing of invoice

okk i got it...thank  a ton pradeep :)

Welcome :)

Rachita believe in your self . Who may write any thing but it should be as per law.