Negative list

 

We are in the contracting business executing various government contracts. After particular tender is allotted to us by the government department, we raise running bills as period of execution of contract is ranging from 2 to 3 years. Now, some of our contracts have become exempt from payment of service tax with effect from 1st July 2012 due to introduction of negative list. We have paid service tax on running bills raised before 1st July 2012 but do we require to pay service tax on running bills raised after 1st July 2012 on services which have become exempt W.E.F. 1st July.

 

Siddharth Bodas

Replies (1)

Hi Siddharth,

As per rule 04 of POT Rules 2011 if service has been provided after change in effective rate of tax and inoice is raised after the change in effective rate of tax then you are not required to charge service tax on the bills if the service is exempt under section 66D.

Thanks 

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