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Liability on information technology services

Bindu jashwani (Internal Auditor SAM GRUOP OF INSTITUTIONS) (119 Points)

03 October 2014

what is the point of taxation under these services.shall we calculate service tax on recipts or on invoices.for the financial year 2014-15 for quarter april-june and july - sep 1014

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6 Replies

Kashish Gupta (B.com (H) , ACA) (368 Points)
Replied 04 October 2014

Invoice or Payment whichever is earlier.

Advance recd : Immediatly

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Bindu jashwani (Internal Auditor SAM GRUOP OF INSTITUTIONS) (119 Points)
Replied 04 October 2014

thank u and one query is that now interest on late pmt of sev.tax is 18per.from 1st oct .as i m paing st for 1st qtr of f.y 14-15 this rate is also aplicable for that andshall i count october mnth also.as a whole mnth.

CA Raman Goel (CA) (602 Points)
Replied 04 October 2014

New rate of intt shall applicable from 1..10.2014,it is irrelevant that on which period it is levied. in short,any ST paid after 1.10.2014 if intt due on such ST it is levied accoording to the new rates.

and in indirect tax any intt calculated on day basis ,so do not consider oct as whole month.

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CA Raman Goel (CA) (602 Points)
Replied 04 October 2014

POINT OF TAXATION SHALL BE AS FOLLW

1 IF INVOICE IS ISSUED IN SPCIFIED TIME- THEN POT SHALL BE - Payment date or Invoice date which ever is earlier

2IF INVOICE IS NOT ISSUED IN SPCIFIED TIME -THEN POT SHALL BE -Payment date of completion of service date whichever is earlier.

NOTE -INVOICE SHALL BE ISSUED IN SPCIFIED TIME MEANS IT SHALL BE ISSUED WITH IN 30 DAYS FROM PAYMENT OF SERVICE OR COMPLETION OF SERVICE WHICHEVER IS EARLIER.

IT Exporter (xxx) (25 Points)
Replied 11 October 2014

Hi,

I have same question related to Invoice/payment date and currency. In case of Exporter, where invoice raised in foreign currency and remittance received in INR. then what date should be considered. E.g. Invoice has been raised in GBP-1000 in month of Sep'14 and payment will remittance in INR in Oct'14 @ 100 per GBP.

Which amount should mention while filling Service tax return?

Whether received amount would considered for Oct filing.

Kashish Gupta (B.com (H) , ACA) (368 Points)
Replied 11 October 2014

Dear IT Exporter,

Invoice or Payment, whichever is earlier is point of taxation. Hence, invoice raised during the month of september shall be considered for filing return of income irrelevant of fact that payment is received in October. So, while filing Return of Service Tax, consider services provided during the month of September 2014.

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