Mahabaleshwara Rao (director) (197 Points)
27 April 2012Under Point of taxation rules,
we are a provider of security service and service bill of march 2012 is billed on 01.04.2012. what is the rate of ST to be charges whether it is 10.3 or 12.36%. The proceeds of which will be received with in 20 - 25 days.
Pls.
Thanx in advance.
Mihir Doshi
(B.Com, CA, CS, LLB)
(2187 Points)
Replied 27 April 2012
CA Syed Raza Abbas Rizvi
(PROPRIETOR )
(631 Points)
Replied 27 April 2012
If the invoice date is on or after 1st april rate should be 12.36%. Agree with mihir ji
RIZWAN AKHTAR
(ACCOUNTS EXECUTIVE)
(87 Points)
Replied 27 April 2012
As per point of taxation you need charged service tax 12.36%. not 10.3%.
Thanks
Praveen Kumar
(Manager - Finance & Accounts)
(189 Points)
Replied 27 April 2012
As per POT Rules
Tax Rate 12.36 % should be chaged Bcoz invoice issued on 1-4-12 and payment also received after 1-4-2012
Pratul
(FINANCE MANAGER)
(105 Points)
Replied 27 April 2012
Reli interesting to note here, that if the invoice was not issued on 1st April,2012 & 14 days had elapsed (now 30 days by virtue of FA 2012) from the date of completion of service, then POT in this case would have been the date of completion of service, i.e 31st March, 2012
AND..
the ST Rate would have been 10.3%. :) Furthermore, the due date of deposit of Tax for the month/Quarter ending MArch is 31st MArch itself, thus payment of the same at a later date would have attracted interest @ 18% (15% in case T/O in prev year <60 lacs) also.
Regards
Pratul
Sonu Kumar
(Account Manager)
(665 Points)
Replied 28 April 2012
If we Raise Invoice or Receive Payment After Changing In Rate of Tax we will be Paid tax at Changed Rate...
Rakesh Kumar
(Accountant)
(25 Points)
Replied 28 April 2012
You should remeber only one thing if invoice is making before 31.03.2012 so in that conditon service tax will be charge 10.3% if after the same then 12.36%
Dilip Darji
(392 Points)
Replied 28 April 2012
Dear Sir.
As per Rule 4 (a) of Point of Taxation rules, 2011, where taxable service has been provided before the change in effective rate of tax, the point of taxation shall be the date of Invoice or the date of receipt of payment, whichever is ealier.
In your case the taxable Service of Security was provided, before the change of effective rate of tax (effective rate of tax was changed from 01/04/2012 and the service was provided till 31/03/2012), the tax rate applicable on the date on which invoice was prepared. In this case invoice was prepared on 01/04/2012, effective rate of tax 12.36 % would be applicable.
Needless tp refer the date of payment, as it would be received only after 01/04/2012 and you had also mentioned that you would receive payment lateon i.e after the issue of Invoice.
DILIP DARJI.
Chandhini Viswanathan
(b com)
(27 Points)
Replied 28 April 2012
what is the rate of ST to be charged in the may 2012 exam ??? 10.3 or 12.36% ???
Mukund Karnani
(Articleship)
(24 Points)
Replied 30 April 2012
If the invoice is created on April then rate will be 12.36%.
Rakesh Kumar
(Accountant)
(25 Points)
Replied 30 April 2012
You don't worry what rate will you charge in the exam of may
becasue when any question will come related to service tax. it will be clearly mentioned in the question what rate you will charge
Thanks & regards.
CA Atul Nighot
(Chartered)
(48 Points)
Replied 30 April 2012
I think ST rate will be 12.36% in your case ..but if you want save some money of ur client...raise back-dated invoice in your system dated 31March...and collect ST at old rate..!!!
Pratul
(FINANCE MANAGER)
(105 Points)
Replied 30 April 2012
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
