My Security Agency submitted the Security Serivice Bill for the month of May-2015 on dt. 31/5/2015 Rs.10000/- & Charged 12.36% Service Tax on 25% value i.e. 2500/-. I want to know that we had paid bill in the month of June than what is the Service tax rate will application for payment of Service tax 12.36% or 14% on 75% amount i.e. Rs.7500/-. Please suggest.
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Service tax on security service payment calculation
Replies (13)
since service provisioning and invoice was issued itself in month of may 2015, therefore the rate of 12.36 % would be applicable.
afterwards 14 % would b levied (inclusive of all cesses).
Under RCM, POT shall be the date of payment as per rule 7. Hence ST would be applicable at 14% I think.
| Originally posted by : Poornima Madhava | ||
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Under RCM, POT shall be the date of payment as per rule 7. Hence ST would be applicable at 14% I think. |  |
as per pot rules where there is change of rate of tax, pot decision stands shift from rule 7.
The query seems to be incorrect as the service recipient has to pay 100% Service tax on the manpower supply / security services w.e.f. 1 April 2015 vide Notification No.30/2012-ST read with No.7/2015.
Thus, you have to pay on the entire value.
Secondly, Poornima is right in terms of rate. Rule 7 shall be applicable to your case, meaning the rate prevailing at the time of payment should be applicable. Thus, you should Service tax on the entire value @ 14%.
As per clause (ii) of rule 4 of point of taxation rules 2011,:::::::::In case taxable service has been provided before change of rate And Invoice issued prior to date of change in service tax rate........then rate on invoice date will be applicable.................In your case...., service provided for may2015 and invoice issue on 31-05-2015..(both prior to change)......Therefore applicable rate in your case is 12.36% AND NOT 14%..............
| Originally posted by : ashish | ||
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As per clause (ii) of rule 4 of point of taxation rules 2011,:::::::::In case taxable service has been provided before change of rate And Invoice issued prior to date of change in service tax rate........then rate on invoice date will be applicable.................In your case...., service provided for may2015 and invoice issue on 31-05-2015..(both prior to change)......Therefore applicable rate in your case is 12.36% AND NOT 14%.............. | |
agree with u buddy
Sorry...I have not noticed that case is falling under reverse charge........yes in this case rule 7 wiill applies and date of payment will be point of taxation i.e. 14% will be leviable......................MISTAKE IN READING QUERRY IS HIGHLY APPOLOGIZED..........
No dear abhishek.....when rate of tax change rule 7 does not stand shift from pot.......But. You can see rule 4 override rule 3......BUT RULE 7 OVERRIDE ALL RULES OF POT........
Right rule 7 will be applicable & st pay will be @ 14%
| Originally posted by : abhishek agarwal | ||
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since service provisioning and invoice was issued itself in month of may 2015, therefore the rate of 12.36 % would be applicable. afterwards 14 % would b levied (inclusive of all cesses). |
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And now as per amendmend ST must be 100 % paid by service receiver under reverse charge method
SERVICE RECEIVER HAS TO PAY THE SERVICE TAX OF 14%
as per new amendmend service reciever is compony /pvt ltd company they hav to pay 14% of service tax.you can refer point of taxation rule 2010 service tax determination of point of taxation in case of change in effective rate of tax
ther service tas purely based on payment ., we have consider the payment., the payment date is June ., so consider the 14%
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