Pot, rules 2011 and small service provider
This query is : Open
11 December 2011
Dear Experts,
After introduction of Point of Taxation, Rules 2011, Service tax is payable based on Rule 3 of POT, Rules 2011 - Invoice or receipt which ever is earlier. Where as Notification no 6/2005 provides exemption to small service provider for aggregate value not exceeding Rs. 10 lakhs, which is explained in the notification as first consecutive payments RECEIVED towards value of taxable service.
Query: Does it mean,Small service provider has to claim the benefit of exemption on receipt basis only, and if he has raised an invoice, the value of which is not received by him, can he not be able to claim the benefit of this exemption notification
Please help
After introduction of Point of Taxation, Rules 2011, Service tax is payable based on Rule 3 of POT, Rules 2011 - Invoice or receipt which ever is earlier. Where as Notification no 6/2005 provides exemption to small service provider for aggregate value not exceeding Rs. 10 lakhs, which is explained in the notification as first consecutive payments RECEIVED towards value of taxable service.
Query: Does it mean,Small service provider has to claim the benefit of exemption on receipt basis only, and if he has raised an invoice, the value of which is not received by him, can he not be able to claim the benefit of this exemption notification
Please help
11 December 2011
The following categories of service providers, operating as individuals, proprietary concerns or partnership firms are liable to pay service tax only when the payment is received.
1.Chartered Accountants 2.Cost Accountants 3.Company Secretaries 4.Architects 5.Interior Decorators 6.Legal Services 7.Scientific and Technical Consultancy Services 8.Consulting Engineers
1.Chartered Accountants 2.Cost Accountants 3.Company Secretaries 4.Architects 5.Interior Decorators 6.Legal Services 7.Scientific and Technical Consultancy Services 8.Consulting Engineers
11 December 2011
Thank you Sir, My query is quiet different. I want to ask, how small service provider would claim exemption after introduction of point of taxation rules. Not 6/2005 still grants exemption to first consecutive payments received towards value of taxable service
11 December 2011
Small service providers whose total value of services provided (including exempt and non-taxable services) is less than Rs 10 lakhs in previous year are not required to pay service tax in current financial year till they reach turnover of Rs 10 lakhs. Clubbing provisions can apply. Registration is required if turnover exceeds Rs 9 lakhs per annum.
11 December 2011
Sumit , this notification still exists, whenever the threshold limit is crossed,service tax payment is due on all the invoices prepared after the 10 lacs limit.
11 December 2011
Sir, Notification grants exemptions on first 10 lakh Rupees received towards taxable service not the first turnover/ service provided of Rs. 10 lakhs.
Take example: An assessee, who is eligible to avail the exemption, issues first invoice on 3.4.12 and payment for the same is pending. Would he be able to claim the exempiton?? Exemption is given to first 10 lakh received/ not the turnover
Take example: An assessee, who is eligible to avail the exemption, issues first invoice on 3.4.12 and payment for the same is pending. Would he be able to claim the exempiton?? Exemption is given to first 10 lakh received/ not the turnover
11 December 2011
Dear Sumit your query is valid i think department need to clarify the above situation because at the time of introduction of POT Rules, 2011 it has not been clarified.
11 December 2011
Thanks Puneet, am still waiting for view of other experts
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