09 January 2013
Under Section 67, Service tax is levied on the gross or agreegate amount charged by the service provide to the receiver.
Under Rule 6(1)(b) of the point of Taxation Rules, 2011, where the person providing the service, receives a payment before the time specified in clause (a), the time, when he receives such payment to the extent of such payment.
Hence,considering Rule 6 (1), in the above case, the invoice raised is preceeding the receipt of payment. Hence, Service tax has to be remitted on 5th April 2011 though the payment would have been received in Feb'12, which is almost one year from the date of raising of invoice.
CAclubindia
