25 November 2015
My friend is providing security services to various client. Now, what is the impact of Swachh Bharat Cess, while preparing the invoice for service provided in the month of November 2015?
Option-1
Charge 14.50% on taxable value for the whole November 2015.
Option-2
Charge 14.00% on taxable value for the period 1st November to 14th November 2015 & 14.50% on taxable value for the period 15th November to 30th November 2015.
Please revert by considering CONTINOUS supply service provision.
25 November 2015
Charge 14.50% for the whole of November as per option 1.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
25 November 2015
Is it possible to issue two different invoices to client for (1) the period 1st November to 14th November 2015 with rate of 14.00%(2) for the period 15th November to 30th November 2015 with rate of 14.50% ?
Is there any problem in service tax audit in future? Can audit team raise query, if we issue two invoice for November only?
25 November 2015
You have to charge service tax on Basic. i.e. 14% on Basic as well as 0.5% on basic value. SBC is not cess on Basic service tax. Eg. if service basic value is Rs. 50000/- then Service Tax @ 14% is Rs. 7000/- & SBC @ 0.5% is Rs. 250/- In case of services covered by abatement
The effective rate of tax on all Abatement Services would be [14.5% * Effective Rate under Abatement Notification - 26/2012]. For example, the effective rate of tax on GTA service would be [14.5%*30%] = 4.35% (and NOT 4.2%).
SBC would be paid separately under a separate accounting code.
CENVAT Credit on SBC paid on Input Service will NOT be available as there is no corresponding amendment in the CENVAT Credit Rules, 2004, we will wait for amendments in CENVAT Rule.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
25 November 2015
Dear Dipesh,
You are right. But my Question is...
Is it possible to issue two different invoices to client for (1) the period 1st November to 14th November 2015 with rate of 14.00%(2) for the period 15th November to 30th November 2015 with rate of 14.50% ? Is there any problem in service tax audit in future? Can audit team raise query, if we issue two invoice for November only?
Read more at: https://www.caclubindia.com/experts/modify_message.asp?entry_id=1034872
25 November 2015
While charging service tax you have to check following condition. 1) Date of service completion, 2) Date of invoice issued & 3) Date of payment received.
If service completed on 30th October & payment received on 14th November and you issued invoice on 25th November then Service Tax % Should be 14% there are no need to charge SBC @ 0.5%.
If Service Completed on 30th October, payment will be receive after 30days but you have to issue invoice today then service tax will be 14% + SBC @ 0.5%.
If date of completion of service is after 15th Nov.2015 invoice is issued after 15th nov. 2015 but payment received before 15th of November 2015. service tax should be 14.05%.
CAclubindia
