29 August 2012
If management decides today that for a particular service bill needs to be raised on customer from 2006-07 onward then what should be the rate to be charged on that Invoice.
For Eg.On 01.08.2012 management decided that invoice to be raised for taxable service on Party "A" from 2006-07 till date. And Invoice is prepared on 25.08.2012..what should be rate of service tax to be charged on bill.
whether tax to be charged as per the respective year rate like in 2010-11 it was 10.3% and now its 12.36%????
As provided that no invoice was raised in 2006-07 but since service has already been provided then the rate of tax prevailing at the time of provision of service shall be applicable.
2. W.e.f. 01.04.2011 Point of Taxation Rules shall be applicable and as per this Rule date of invoice or payment received whichever is earlier shall be the criteria to decide the rate of tax.
29 August 2012
Identify following three events: (i) Date on which taxable services have been provided; (ii) Date of issue of invoice; (iii) Date of receipt of payment
Only Service Has Been Provided, Remaining Two are Not Yet Completed.
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