20 December 2012
certain services are rendered and invoiced before 30.06.2012 for hitherto non taxable services (now taxable due to negative list) and collection happens post July 2012. Will service tax be applicable in this case ie whether invoice basis or receipt basis?
As per Rule 3 of Point of Taxation Rules,2011 the invoice for the service has been issued before receipt of payment hence the service is non taxable. Reference to section 67A can also be made which also support my view fro non taxability of service.
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