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Service tax payment due date as per latest amendments

nitin (C.A. Final 2nd group) (58 Points)

27 December 2011

Hiiiii members.....

Please clarify me about the latest amendments in Service Tax payment i.e. payment on invoice or on provision basisi instead of receipt basis.....

Pls. also clarify me whether there is any exceptions for practicing Chartered Accountants...

Thanks.

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3 Replies

CA PRABHAKAR JHA (ACA) (313 Points)
Replied 27 December 2011

Please read the article (on point of taxation by Mr. V S Datey) at following link:

https://dateyvs.com/sez_steel.htm

CA Prabhat Gupta (Manager (Indirect Taxes)) (821 Points)
Replied 28 December 2011

Please refer to The Point of Taxation Rules, 2011 as amended:

Rule 3 has been amended to provide that the point of taxation shall be as follows:

(a) Date of invoice or payment, whichever is earlier, if the invoice is issued within the prescribed period of 14 days from the date of completion of the provision of service.

(b) Date of completion of the provision of service or payment, if the invoice is not issued within the prescribed period as above.

The applicability of the rule will be clear from the illustrations in the following table:

S. No.	Date of completion of service	Date of invoice	Date on which payment recd.	Point of Taxation	Remarks
1.	April 10, 2011	April 20, 2011	April 30, 2011	April 20, 2011	Invoice issued in 14 days and before receipt of payment
2.	April 10, 2011	April 26, 2011	April 30, 2011	April 10, 2011	Invoice not issued within 14 days and payment received after completion of service
3.	April 10, 2011	April 20, 2011	April 15, 2011	April 15, 2011	Invoice issued in 14 days but payment received before invoice
4.	April 10, 2011	April 26, 2011	April 5, 2011 (part) and April 25, 2011 (remaining)	April 5, 2011 and April 10, 2011 for respective amounts	Invoice not issued in 14 days. Part payment before completion, remaining later