Service tax on transporter
This query is : Open
09 April 2013
we are taking services from transporters continuously but we receipt bills from transporters after 2-3 months.
Like for april month bill received in july..
But payment made in june.
In which month and date we have to deposit service tax as service receipint.
Kindly reply.
Thanks.
Like for april month bill received in july..
But payment made in june.
In which month and date we have to deposit service tax as service receipint.
Kindly reply.
Thanks.
09 April 2013
Hi Gaurav,
With respect to your query, As per service tax rules, Service Tax will be payable on accrual basis /completion of service or receipt basis, whichever earlier.
In your query, since you are receiving service before the bill and further it is not continuous basis, hence as per your example, service tax becomes payable in the month of April itself.
I hope this would resolve your query.
Regards,
Niraj Pandit
With respect to your query, As per service tax rules, Service Tax will be payable on accrual basis /completion of service or receipt basis, whichever earlier.
In your query, since you are receiving service before the bill and further it is not continuous basis, hence as per your example, service tax becomes payable in the month of April itself.
I hope this would resolve your query.
Regards,
Niraj Pandit
09 April 2013
Hi Gaurav,
With respect to your query, As per service tax rules, Service Tax will be payable on accrual basis /completion of service or receipt basis, whichever earlier.
In your query, since you are receiving service before the bill and further it is not continuous basis, hence as per your example, service tax becomes payable in the month of April itself.
I hope this would resolve your query.
Regards,
Niraj Pandit
With respect to your query, As per service tax rules, Service Tax will be payable on accrual basis /completion of service or receipt basis, whichever earlier.
In your query, since you are receiving service before the bill and further it is not continuous basis, hence as per your example, service tax becomes payable in the month of April itself.
I hope this would resolve your query.
Regards,
Niraj Pandit
09 April 2013
My opinion is different.....as per service tax rules under reverse charge mechanism you have to pay service tax in the next quarter or month due date w.e applicable to you in which you had paid for the bill if it within 6 month of bill date....otherwise normal situation due date is applicable to you
Kindly visit following Link
http://www.indiantaxupdates.com/2013/01/25/service-tax-reverse-charge-mechanism-accounting-treatment/
Kindly visit following Link
http://www.indiantaxupdates.com/2013/01/25/service-tax-reverse-charge-mechanism-accounting-treatment/
09 April 2013
I agree with you, Neha.... Thanks for the update..... Will point out the relevant portion for the point of taxation as per your link;
"Rule 7: - Determination of point of taxation in case of specified services or persons: -
Notwithstanding anything contained in these rules, the point of taxation in respect of the persons required to pay tax as recipients of service under the rules made in this regard in respect of services notified under sub-section (2) of section 68 of the Act, shall be the date on which payment is made:
Provided that, where the payment is not made within a period of six months of the date of invoice, the point of taxation shall be determined as if this rule does not exist:
As this is clear from the above Rule 7 of Point of Taxation is that in case of Reverse Charge the Point of Taxation is when the payment is made .i.e.service tax liability is arise when service recipient make payment to service provider."
"Rule 7: - Determination of point of taxation in case of specified services or persons: -
Notwithstanding anything contained in these rules, the point of taxation in respect of the persons required to pay tax as recipients of service under the rules made in this regard in respect of services notified under sub-section (2) of section 68 of the Act, shall be the date on which payment is made:
Provided that, where the payment is not made within a period of six months of the date of invoice, the point of taxation shall be determined as if this rule does not exist:
As this is clear from the above Rule 7 of Point of Taxation is that in case of Reverse Charge the Point of Taxation is when the payment is made .i.e.service tax liability is arise when service recipient make payment to service provider."
09 April 2013
you are welcome dear
Regards,
Neha Chauhan
Regards,
Neha Chauhan
09 April 2013
Thanks Niraj and Neha for your valuable opinions...
I got the new updation...
I got the new updation...
12 April 2013
Hi Niraj/Neha,
i want to know if have imported service in july month and paid service tax in august.
Invoice received in august itself.
But payment of service is made to party in september.
Then in which month service is to be shown in ST-3 Return.
And if payment made in october, whether case will change.
i want to know if have imported service in july month and paid service tax in august.
Invoice received in august itself.
But payment of service is made to party in september.
Then in which month service is to be shown in ST-3 Return.
And if payment made in october, whether case will change.
12 April 2013
And further i want to know, payment referred in Rule 7 is of what?
Payment of Service to party or Payment of service tax to department ??
Payment of Service to party or Payment of service tax to department ??
12 April 2013
Dear Gaurav,
In your first Question you have to show it in August and in second if you paid whole amount in oct then yes the case will be changed.
Payment of service to party
Regards,
Neha Chauhan
In your first Question you have to show it in August and in second if you paid whole amount in oct then yes the case will be changed.
Payment of service to party
Regards,
Neha Chauhan
12 April 2013
why in first case, required to show in august while as per rule 7, date of payment is POT(confirmed by YOU).
I think it will be sept. in First ??
And Oct. IN second ??
and further if service received in feb. and payment made in april then it will come in next year return ??
I think it will be sept. in First ??
And Oct. IN second ??
and further if service received in feb. and payment made in april then it will come in next year return ??
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