Service tax query

As said by you, company entered in contract and received payment/billing is done on quartely basis so u r case is of continuous supply of service

In a normal situation as per Rule 3 (a), point of taxation will be time when the invoice for the service provided or to be provided is issued ( in u r case quartely) but where invoice had not been issued within fourteen days of completion of service, date of such completion of service will be point of taxation.

Service tax is need to be paid on quartely basis as and when invoice is issued.

Originally posted by : hemant
	As said by you, company entered in contract and received payment/billing is done on quartely basis so u r case is of continuous supply of service In a normal situation as per Rule 3 (a), point of taxation will be time when the invoice for the service provided or to be provided is issued ( in u r case quartely) but where invoice had not been issued within fourteen days of completion of service, date of such completion of service will be point of taxation. Service tax is need to be paid on quartely basis as and when invoice is issued.

AGREED                                   

Originally posted by : hemant
	As said by you, company entered in contract and received payment/billing is done on quartely basis so u r case is of continuous supply of service In a normal situation as per Rule 3 (a), point of taxation will be time when the invoice for the service provided or to be provided is issued ( in u r case quartely) but where invoice had not been issued within fourteen days of completion of service, date of such completion of service will be point of taxation. Service tax is need to be paid on quartely basis as and when invoice is issued.

AGREED.

service tax to be remitted  earlier of these,

1. payment schedule as per contract

2. money received

3. invoice raised

4. work completed 

dear ramesh sir,

could u tell me the effective date service tax payment as per latest amendment.

It is 5 th of next month normally bt if electronically to be paid then its 6 th of next month.

The said notification is applicable from 01.04.2011 or 01.07.2011, whichever is convinient for you.

And the payment has to be made when the bill the raised or money is received, whichever is earlier.

This is as per amendement, as per as per Rule 3 (a), point of taxation  and continuous supply of service, whichever is earlier of the following,

1. date of payment as per payment schedule in the contract or

2. date of money received or

3. date of invoice raised or

4. date of work completetion

I n ur case it is quarterly basis..

but in case if a person has not received payment after payment of service tax .then u can take the adjustment to the extent of such default.As service tax is liable 2 b paid purely on receipt basis..weather it is advance receipt or  receipt after providing service.