Service tax bill

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NIRAJ

EXECUTIVE

36 Points Posted on 01 November 2012

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

Replies (3)

Pradeep Nainawati

ACA

458 Points Posted on 02 November 2012

Hi Niraj,

ST rate will be 10.30%.

Yes you need to pay interest. No need to pay penalty now.

NIRAJ

EXECUTIVE

36 Points Posted on 02 November 2012

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

Varsha Mehta

Student CS

36 Points Posted on 02 November 2012

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”.