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Point of taxation

dipti warekar (Accountant) (33 Points)

27 August 2011

Hi, please let me know rule for payment of service tax (i.e Bill based / Receipt Based) for shipping co.

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8 Replies

C.A. Sandeep Wawhal (CA, PGDFM, BCom) (1831 Points)
Replied 27 August 2011

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

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Amit Gupta (Loosening Myself) (1508 Points)
Replied 27 August 2011

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

Manika Venkata Siva Prasad (IPCC-student) (84 Points)
Replied 27 August 2011

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

Manika Venkata Siva Prasad (IPCC-student) (84 Points)
Replied 27 August 2011

Service tax shall be charged on accrual basis w.e.f 01.07.2011. Refer to the notification no.18/2011 dated 01.03.2011 and then notification no. 41/2011 dated 27.06.2011

https://www.servicetax.gov.in/notifications/notfns-2k11/st-tru2k11/st18-2k11.pdf

https://www.servicetax.gov.in/notifications/notfns-2k11/st-tru2k11/st41-2k11.htm

praveen (Chartered Accountant) (6971 Points)
Replied 27 August 2011

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

Fourteen days from the date of providing the service
Date of receipt of any money
Date of invoice

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Tripti ( CA, MBA, CPA) (no) (132 Points)
Replied 28 August 2011

I agree with Pravin..

Manika Venkata Siva Prasad (IPCC-student) (84 Points)
Replied 29 August 2011

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.

Jimmy (CA ) (75 Points)
Replied 30 August 2011

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.

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