Service tax

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Manish Gupta

Student CA Final

21 Points Posted on 18 June 2015

Dear All,

I am handling a case in service tax where the date of reciept of payment is before 1st June 2015 and the date of provisioning of services is beyond 1st June 2015 and there is no concept of issue of invoice as the service is a nature of convention in which the member from all over india and abroad do came and attend the meeting by paying a nominal fees and no one is issued invoice for the same instead the members for such a event is issued a reciept for the payment of the membership fees.

Kindly judge what rate of service tax to be applicable on such a kind of services.????

Replies (2)

CA. Ankit Chandrakar

chandrakar.ankit@gmail.com

1108 Points Posted on 19 June 2015

As you said, the payment has been received prior to 01.06.15 but the service has been provided beyond June'15, the rate of Service Tax will depend on the date of issue of so called receipt/invoice.

If the receipts are issued before 01.06.15, the rate shall be 12.36% But if the receipts are issued on or after 01.06.15, the rate shall be 14%.

(Mind you, Rule 4A of ST Rules, 1994 mentions that a provider of service must issue an invoice containing prescribed details, although there is no prescribed format).

chandra sekar

Manager-Accounts

297 Points Posted on 23 December 2015

i think, the service tax liability starts based on invoicing and not based on payment. So, once the bill was accounted, from that date, service tax liability, starts.