Service Tax due on billing basis.

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RAAJIV GARG (Querist)
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06 July 2011 Dear Sir,
I came to know that service tax is now payable on billing basis wef 01.07.2011.
Further came to know that Engineering Consultants are exemted from this purview i,e they will deposit the service tax on receipt basis. Is it true ? If yes. Could u pls give me reference of Govt notification/order.

RAAJIV GARG

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 July 2011 No. Engineering consultants has to pay ST on billing basis and not on cash basis.

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RAAJIV GARG

RAAJIV GARG (Querist)
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06 July 2011 Thanks a lot,Sir.

RAAJIV

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Guest (Expert)

06 July 2011 Point of Taxation Rules, 2011 provides that consultancy service provided by the individuals or proprietary firms or partnership firms can opt to pay service tax on cash basis instead of acrual basis. However, consulting engineer [65(105)(g)] is not covered therein.