Q.1 A mega exemption notification which covered a service was removed
thus became taxable from 1-3-2016.
one service provider rendered the service on 20-02-2016 and received payment on 27-02-2016
the invoice was however raised on 18-03-2016
the value of service is rs 100000 and the tax rate is 14.5%
tax liability??
Q.2 Jai hanuman Ltd. engaged in service of repair and maintenance of generators has service tax collections (output) of rs 200000
during the period if excise duty on machineries acquired rs 50000 and service tax (input) rs 20000
the tax liability?
- It is the case of 'change in effective rate of service tax'. POT is 'date of receipt', 27 Feb.
- Tax liability: 2 lac - (50% of 50,000, balance in next year) - 20,000.
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