Rule 4 of potr,2011

Rule 4 deals with Determination of point of taxation in case of change in effective rate of tax If Taxable service is provided before change in effective rate of service tax then if Invoice is issued and payment received after the change in effective rate then POTR will be date of invoice or date of receipt of payment whichever is earlier. If Invoice is issued before change in effective rate then POTR Date of invoice (provided service is provided before change in rate) If Payment is received before change in effective rate then POTR will be Date of receipt of payment (provided Invoice is issued after change in effective rate)

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CASE A: where services are provided before change of rate:

  - if invoice is issued before and payment is received after, POT shall be date of invoice

  - if invoice is issued after and payment is received after, POT shall be date of invoice or date of payment whichever is earlier

  - if invoice is payment is received earlier and invoice is issued after. POT shall be date of payment

CASE B: where services are provided after the change of rate"

  - if invoice is issued before and payment is received after, POT shall be date of payment **##

  - if payment is received before and invoice is issued after, POT shall be date of issue of invoice

  - if both have taken place before change in rate, POT shall be date of invoice or date of payment whichever is earlier.

**## in this case you will have to issue supplementary invoice as required under rule 9 of CENVAT CREDIT RULES, 2004 so that service recepient can take CC in accordance with the said rules.

 

Thanks & Regards

sourav

CASE A: where services are provided before change of rate:

  - if invoice is issued before and payment is received after, POT shall be date of invoice

  - if invoice is issued after and payment is received after, POT shall be date of invoice or date of payment whichever is earlier

  - if invoice is payment is received earlier and invoice is issued after. POT shall be date of payment

CASE B: where services are provided after the change of rate"

  - if invoice is issued before and payment is received after, POT shall be date of payment **##

  - if payment is received before and invoice is issued after, POT shall be date of issue of invoice

  - if both have taken place before change in rate, POT shall be date of invoice or date of payment whichever is earlier.

**## in this case you will have to issue supplementary invoice as required under rule 9 of CENVAT CREDIT RULES, 2004 so that service recepient can take CC in accordance with the said rules.

 

Thanks & Regards

sourav

Thanks But u r explaining the POT which was not the problem,Can anyone give an example covering not only the POT but also Service tax payable at old/new rates respectively