Service tax point of taxation
This query is : Resolved
07 November 2014
service is provided from june to till date but invoice is not issued till now. then according to my knowledge point of taxation will be date of completion of service if invoice is not issued within 30 days. and now from june to till date service tax is required to pay with interest upto today.
please let me know that my contention is true or not and what happens if this service is covered under continuous service.
please let me know that my contention is true or not and what happens if this service is covered under continuous service.
07 November 2014
Under the Point of Taxation Rules, the liability to service tax arises on:
(a) Date of Completion of services rendered or
(b) If invoice is issued within 30 days of the rendering of service, then the date of invoice will be the date of completion of service (otherwise, it is the date of completion of service)
or
(c)Receipt of consideration, either after completion or as advance
Whichever is earliest.
From your query it is not clear whether you have received any amount for services rendered. Secondly, the liability for tax arises, in case of non-corporate assessees, every quarter and for corporate assessees monthly. Assuming you are a non corporate assessee, you have to determine the value of services rendered in June, and rendered between July to September. The amount of tax should be paid by 5th July for June and 5th October for September quarter.
The Rule for continuos Supply of service has been merged with Rule 3 and therefore there is no differnce in tax liability in case of Continuos Service.
(a) Date of Completion of services rendered or
(b) If invoice is issued within 30 days of the rendering of service, then the date of invoice will be the date of completion of service (otherwise, it is the date of completion of service)
or
(c)Receipt of consideration, either after completion or as advance
Whichever is earliest.
From your query it is not clear whether you have received any amount for services rendered. Secondly, the liability for tax arises, in case of non-corporate assessees, every quarter and for corporate assessees monthly. Assuming you are a non corporate assessee, you have to determine the value of services rendered in June, and rendered between July to September. The amount of tax should be paid by 5th July for June and 5th October for September quarter.
The Rule for continuos Supply of service has been merged with Rule 3 and therefore there is no differnce in tax liability in case of Continuos Service.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund of AY 22-23
- HSN Details in IFF/GSTR-1 & in GSTR 9
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Tax on capital gains revoked us 54f
- TDR receipts for agreement holder
- Inventory of finished goods
- Applicability of Ind As to associate of associate
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Disallowance of Section 43B(h) to sez units
- GST APPLICABILITY ON POLLUTION CHECK SERVICE
- Refund AY 2012-13 and 2013-14
- DIRECT TAX CODE 2025
- MODEL FILLED AUDIT REPORT FOR TRUSTS IN FORM 10B
- 115TD on cancellation of 12A 80G Registration
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
Trending Online Classes
CAclubindia
