Determination of Point of Taxation in accordance with Rule 3 of the Point of Taxation of Rules , 2011
|
Date of Providing Service |
Date of Invoice |
Date of Payment |
Status of Service |
Point of Taxation under Rule 3 |
Remarks |
|
01/06/2011 |
01/05/2011 (STP) |
01/04/2011 |
STP |
01/04/2011 |
Earliest of the three dates Point at which service will be deemed to be provided as per Rule 2(e) of Point of Taxation of Rules , 2011 |
|
15/05/2011 |
STP |
01/05/2011 |
|||
|
15/07/2011 |
SP |
01/05/2011 |
|||
|
01/07/2011 (SP) |
01/04/2011 |
STP |
01/04/2011 |
||
|
15/06/2011 |
SP |
01/06/2011 |
|||
|
15/07/2011 |
SP |
01/06/2011 |
*STP = Service to be provided
*SP = Service Provided
Rule 3 says that the Point of Taxation shall be earlier of the following :
(i) Provision of Service
(ii) Issue of Invoice
(iii) Receipt of Payment
Determination of Point of Taxation in accordance with Rule 4 of the Point of Taxation of Rules , 2011 IN CASE OF CHANGE OF RATE OF TAX AFTER THE DATE OF PROVIDING SERVICE
|
Date of Providing Service |
Date of Invoice |
Date of Payment |
Date of change of Rate of Tax |
Case |
Basis of Point of Taxation under Rule 4 |
Point of Taxation under Rule 4 |
Point of Taxation under Rule 3 |
|
01/06/2011 |
01/05/2011 (STP) |
01/04/2011 |
10/06/2011 |
N.A. |
As per Rule 3 |
01/04/2011 |
01/04/2011 |
|
15/05/2011 |
10/06/2011 |
N.A. |
As per Rule 3 |
01/05/2011 |
01/05/2011 |
||
|
15/07/2011 |
10/06/2011 |
Case II |
Date of Issue of Invoice |
01/05/2011 |
01/05/2011 |
||
|
01/07/2011 (SP) |
01/04/2011 |
10/06/2011 |
Case III |
Date of Payment |
01/04/2011 |
01/04/2011 |
|
|
15/06/2011 |
10/06/2011 |
Case I |
Date of Payment or Issue of Invoice whichever is earlier |
15/06/2011 |
01/06/2011 |
||
|
15/07/2011 |
10/06/2011 |
Case I |
Date of Payment or Issue of Invoice whichever is earlier |
01/07/2011 |
01/06/2011 |
Taxable Service provided before the date of change of rate :
|
Case |
Date of Invoice |
Date of Payment |
Point of Taxation Under Rule 4 |
|
I |
After the date of change of rate |
After the date of change of rate |
Date of Payment or Issue of Invoice whichever is earlier |
|
II |
Prior to Date of Change of Rate |
After the date of change of rate |
Date of Issue of Invoice |
|
III |
After the date of change of rate |
Prior to Date of Change of Rate |
Date of Payment |
Determination of Point of Taxation in accordance with Rule 4 of the Point of Taxation of Rules , 2011 IN CASE OF CHANGE OF RATE OF TAX BEFORE THE DATE OF PROVIDING SERVICE
|
Date of Providing Service |
Date of Invoice |
Date of Payment |
Date of change of Rate of Tax |
Case |
Basis of Point of Taxation under Rule 4 |
Point of Taxation under Rule 4 |
Point of Taxation under Rule 3 |
|
01/06/2011 |
01/05/2011 (STP) |
01/04/2011 |
20/07/2011 |
Case II |
Date of Payment or Issue of Invoice whichever is earlier |
01/04/2011 |
01/04/2011 |
|
15/05/2011 |
20/07/2011 |
Case II |
Date of Payment or Issue of Invoice whichever is earlier |
01/05/2011 |
01/05/2011 |
||
|
15/07/2011 |
20/07/2011 |
Case I |
Date of Payment |
15/07/2011 |
01/05/2011 |
||
|
01/07/2011 (SP) |
01/04/2011 |
20/07/2011 |
Case III |
Date of Issue of Invoice |
01/07/2011 |
01/04/2011 |
|
|
15/06/2011 |
20/07/2011 |
N.A. |
As per Rule 3 |
01/06/2011 |
01/06/2011 |
||
|
15/07/2011 |
20/07/2011 |
N.A. |
As per Rule 3 |
01/06/2011 |
01/06/2011 |
Taxable Service provided after the date of change of rate :
|
Case |
Date of Invoice |
Date of Payment |
Point of Taxation Under Rule 4 |
|
I |
Prior to Date of Change of Rate |
After the date of change of rate |
Date of Payment |
|
II |
Prior to Date of Change of Rate |
Prior to Date of Change of Rate |
Date of Payment or Issue of Invoice whichever is earlier |
|
III |
After the date of change of rate |
Prior to Date of Change of Rate |
Date of Issue of Invoice |
From the above illustration, it is very much obvious that there is a contradiction in determination of Point of Tax under Rule 3 and Rule 4. Both these rules suggest different point of tax on different occasions or events when change in the rate of tax takes place at three different points of time viz. Date of Provision of Service, Date of Payment or Date of Issue of Invoice.
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