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Service tax query
1) In case service provided before change in effective rate:
Invoice prior to change but payment received after change in effective rate then point of Taxation Shall be Date of Invoice.
2) If service provided after change in effective rate:
If Invoice is issued prior to change of tax rate but payment aft change in effective rate then Point of Taxation Shall be Date of Payment.
Hope your query fall in one of the above conditions..
As per rule 4 of POTR:
- Taxable service has been provided before change in effective rate
|
S/N |
Date of provision of service |
Date of invoice |
Date of payment received |
Point of Taxation |
|
(i) |
Before change |
After change |
After change |
Date of invoice or payment, whichever is earlier |
|
(ii) |
Before change |
Before change |
After change |
Date of invoice |
|
(iii) |
Before change |
After change |
Before change |
Date of payment |
- Taxable service has been provided after change in effective rate
|
S/N |
Date of provision of service |
Date of invoice |
Date of payment received |
Point of Taxation |
|
(i) |
After change |
Before change |
Before change |
Date of invoice or payment, whichever is earlier |
|
(ii) |
After change |
Before change |
After change |
Date of payment |
|
(iii) |
After change |
After change |
Before change |
Date of invoice |
Kindly read rule 5 of POTR. Rule 5 is against the law and as per Rule 5 KKC on your case is payable but as per law KKC on your case is not payable
Above Rule 5 is for service provider but for service receipnt Rule 7 is aplicable. As per Rule 7 date of payment will be point of taxation and if no payment done on or before 31st may 2016 KKC is payable.
Issueing of Invoice & Payment received whichever is Earlier.
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