Service tax amt. realised in nov.12, service is in negative

The Nature of My Business is Advertising Agency which is in Negative List w.e.f. 01/07/2012. I have filled my ST- 3 Return (Period- April. 12 to June. 12)  before due date, now i have realised an amount of Service Tax in November- 2012  against our Invoice  (Invoice date: 12/05/2012). How can i pay Service Tax and the of said Invoice ?

Replies (4)

According to the Point of Taxation Rules,2011 teh liability to pay service tax ariseson the occurence of service provided/ invoice issued/ payment received, which ever is earlier. The following table will make it clear:

 

Sl. No.

Service Provided on

Invoice Issued on

Payment Received on

Point of taxation

1

7th July, 11

10th July, 11

10th Aug, 11

7th July, 11

2

7th July, 11

5th Apr, 11

10th Aug, 11

5th Apr, 11

3

7th July, 11

5th May, 11

5th Apr, 11

5th Apr, 11

4

7th July, 11

5th Apr, 11

10th Apr, 11

5th Apr, 11

Hence, irrespective of the fact that you have received the payment in November 12, the service tax has to be paid  in accordance with the date of invoice(assuming that service was provided after that date), i.e, on 5th/6th of june, as the case may be.

For now, you should revise your return and pay the tax along with the interest to mitigate future litigations.

Nicely explained by Priyanka.

Regards,

Thanx..

Agree with Miss Priyanka. After The date of realisation is no longer relavant from 01-04-2011 after the Point of Taxation Rules, 2011 comes into force except when payment is received in Advance. POT Rules were optional upto 30-06-2011 and thereafter they are mandatory. Since the company raised Invoice on 12-05-2012, the service was taxable at the time of Point of Taxation and liability accrued then only.  Any service becoming exempted/non-taxable after liability has accrued is of no significance. Kindly revise return and pay ST along with interest @ 15%/18% as the case may be.

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