Sec.67a and pot rule 5 new levy

plz refer rule 4 of point of taxation rule.sir.if you have get advance or you have issued invoice before applicabality of new tax rule.service is not taxable .

I think rule 4, applies for change in effective rate of tax. Rule 5, is for new levy. As per section 67A, the rate of service tax, value of a taxable service and rate of exchange, in force or as applicable at the time when the taxable service has been provided or agreed to be provided is relevant. So automatically, when a service is provided before it is subject to tax, it becomes not taxable. 

sorry i have made mistake in writing.refer rule 5.

you had  to receive payment before service became taxable and you had to issue invoice within 14 days of the date when the service is taxed for the first time. then you have to not pay service tax.

Ya, that is as per rule 5. But it is provided that POT rules will be used hereafter to determine the liability and not the rate. Hence, rate at the time prevailing on rendering of service tax is applicable. So, when there is a new levy, before which the service is rendered, there is no rate on the service so rendered.

As per Supreme Court judgement, the taxable event for levying Service Tax is the rendering of service.

further, the statutory provision of section 67A inserted w.e.f. 28-05-2012 has much more force then the POT Rules, 2011

Sir, pls clarify me on rule 4 an 5...

Dear Arvind,

Kindly read my Article named Section 67A - Analysis with respect to Point of Taxation Rules, 2011 and revert. The Article contains my views based on Explanatory Memorandum to Union Budget 2012-13.

/articles/section-67a-analysis-with-respect-to-point-of-taxation-16570.asp

Regards,

tax2001-it @ yahoo.com