Pot rules of st - discussion

POT 2011 is Applicable to All service providers except professionals who are excluded from POT 2011.

Prior to POT 2011 Ser Tax liability got established as payable on Receipt of Payment but under POT rules it will arise on Provision of services & Preparation of Bill where the Period for Making of Bill is 30 days Except for Banking & financial Institutions & also Professionals like CA/CS/CWA etc are excluded from POT 2011. ( In a Nut shell. Prior to POT Liability of service tax was based on say Cash basis off accounting principles.i.e when you recieve payments & under POT 2011 it is like on Mercantile basis. I hope concept stands cleared

plz expla what happend if nither of rull 5(a) or 5(b) not satisfied. In that cases is it simple taxable or it is to be tasted again by rull 3

thanks khusboo for making such effort....

I hv one query plz....clear. What happen where payment is not recd within 6 month in case of reverse charge under rule 7... "In rule 7 its given that if paymnt is not recd within 6 month then it shall be taxble as this rule is not in existence." but i don't know what happen if this rule is not in existence.. Plz explain

Originally posted by : vivek tiwari
	I hv one query plz....clear. What happen where payment is not recd within 6 month in case of reverse charge under rule 7... "In rule 7 its given that if paymnt is not recd within 6 month then it shall be taxble as this rule is not in existence." but i don't know what happen if this rule is not in existence.. Plz explain

when rule 7 does not exist exists Follow RULE - 3 for taxablility of such service

PAYMENT DATE or COMPLETION  OF SERVICE  DATE   WHICHEVER IS EARLIER  

 

Thank you khushboo for such detailed info 

@ Yogesh

Practicing CA/CWA/CS , Advocate....etc also liable to pay ST on accrual basis as per POT Rule wef 1.4.12

since Rule 7(c) POT is omitted wef 1.4.12