Limit of rs.50 lakhs in point of taxation rules

This query is : Resolved

CA Parul Saxena (Querist)
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20 November 2014 Whether limit of Rs.50 lakhs which was available to Individual and firms in 2012 to determine Point of taxation as per receipt basis is also applicable for 2014???

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 November 2014 Third proviso to Rule 6 of the Service Tax rules provides that in case of individuals and partnership firms whose aggregate value of taxable services provided from one or more premises is fifty lakh rupees or less in the previous financial year, the service provider shall have the option to pay tax on taxable services provided or agreed to be provided] by him up to a total of rupees fifty lakhs in the current financial year, by the dates specified in this sub-rule with respect to the month or quarter, as the case may be, in which payment is received.

In simple words individuals & firms can pay service tax on the receipt of money.