Service tax query

558 views 6 replies

HETAL BHANUSHALI

Article assistant

37 Points Joined June 2014

my firm is paying service tax on receipt basis. Now there is a change in service tax w.r.f.01/06/16 from 14.5 to 15%. So in case where invoice is issued before 01/06/16 but payment received after 01/06/16 service tax to be paid @ 14.5% or 15%

Replies (6)

Sagar Ramoliya

Artical

61 Points Joined March 2014

As per Point of Taxation Rule,2011
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..

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

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

gopal

article assitent

41 Points Joined December 2012

Small service provider i.e. upto turnover 50 lacs has option to pay service tax on receipt basis. so i think other rules of pot are irrelevant upto 50 lacs.

CA Sujeet Kumar

Self-Practice

738 Points Joined January 2011

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

CA Sujeet Kumar

Self-Practice

738 Points Joined January 2011

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.