Return for service tax

This query is : Resolved

SAMIR DESAI (Querist)
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15 October 2011 Dear Sir please tell me when our service tax liability,when we book bill or when we made payment,service tax return,payment due date

PUNEET GOYAL

PUNEET GOYAL (Expert)
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15 October 2011 In service tax, there are three events as follow:

1. Completion of service

2. Issue of Invoice

3. Receipt of payment

With introduction of point of taxation rules 2011, now service tax in normal case is payable on accrual basis.

Normal provision as per rule 3 of POT rules 2011 are as follows:

Point of taxation shall be

1. Issue of invoice or receipt of payment,
Whichever is earlier
( If invoice is issued within 14 days from the date of completion of services under rule 4A of STR, 1994)

or

2. Completion of service or receipt of payment,
whichever is earlier
( If invoice is not issued within 14 days from the date of completion of services under rule 4A of STR, 1994)

or

3. Date of receipt of advance payment.

Example:1

Suppose date of completion of service is 31.10.211

Date of issue of invoice is 12.11.2011

date of receipt of payment is 15.11.2011

Ans: Point of taxation shall be date of issue of invoice i.e. 12.11.2011 and service tax will be deposited on 05.12.2011 or 06.12.2011 as the case may be if you have to deposit tax on monthly basis.

Example2:
Suppose in above example date of issue of invoice is 16.11.2011.

Ans: Now Point of taxation shall be date of completion of service i.e. 31.10.11 and service tax will be deposited on 05.11.2011 or 06.11.2011 as the case may be if you have to deposit tax on monthly basis.