Sbc

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2015 Period of Service- Oct.2015

Date of invoice - 18-11-2015

Date of payment - Dec.15

Whether SBC is applicable

CA CS Sweta Solanki

CA CS Sweta Solanki (Expert)
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17 December 2015 Rule 5 of Point of Taxation Rules, 2011 is applicable for levy of SBC which is as follows.

3.1 The Rule 5 of Point of Taxation Rules, 2011 determines payment of tax in case of new services and is quoted as below:

“5 Payment of tax in case of new services: Where a service is taxed for the first time, then-

(a) no tax shall be payable to the extent the invoice has been issued and the payment received against such invoice before such service became taxable;

(b) no tax shall be payable if the payment has been received before the service becomes taxable and invoice has been issued within fourteen days of the date when the service is taxed for the first time.”

In other words, payment should have been received before levy of SBC i.e. 15-11-2015.

So, in your case SBC will be applicable.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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17 December 2015 date of Bill is important for Calculating Service tax . SBC is applicable if you bill on or after 15.01.2015 0.5% on Service. Refer notification ST 21 & ST 22 -2015

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