we are going to issue a bill against repair and maintenance service, service provided during the period 2010-2011 & 2011-2012 but bill was not raised at that time and neither any money has been received from party
queries-
i) What will be the rate of service tax, if we issue bill in the month of November '2012?
ii) Do i have to pay any interest or penalty for this?
Thanks in advance
Regards
Niraj
Hi Niraj,
ST rate will be 10.30%.
Yes you need to pay interest. No need to pay penalty now.
Sir, Thanks for replying but i have a question regarding interest why should i pay interest as i have not received any amount from party regarding the service provided.
kindly explain,if there is any notification or reference, kindly provide the same.
Regards
Niraj
Dear Niraj,
In this regard please refer Point of Taxation (Amendment) Rules, 2012 as under -
a) the time when the invoice for the service provided or to be provided is issued :
“Provided that where the invoice is not issued within the time period specified in rule 4A of the Service Tax Rules,1994 (thirty days), the point of taxation shall be the date of completion of provision of the service”.
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