Service tax in case of new levy....

if v r service providers, &

if a service is introduced and taxable frm 01/07/2014

considering "point of taxation Rule-5, pmt. of tax in case of new service" ....

case-I

1) dt. of completion of service-2/07/2014

2) dt. of issue of invoice- 30/06/2014

3) dt. of pmt considered - 30/06/2014..... is service tax leviable?

case-II

1) dt. of completion of service-15/06/2014

2) dt. of issue of invoice- 18/07/2014

3) dt. of pmt considered - 30/06/2014..... is service tax leviable?

case-III

1) dt. of completion of service-2/07/2014

2) dt. of issue of invoice- 30/06/2014

3) dt. of pmt considered - 01/07/2014 or after .... is service tax leviable?

Thnx in advance....

 

Replies (1)

Point of Taxation in case of New services.Service tax on such services should not be applicable in the following two cases (Rule 5)

i)when the Invoice has been issued & Payment is received before such service is taxable.

ii)If Payment is received before such service is taxable & Invoiuce is issued with in 14 days of the date when such service ia taxable.

In other cases u have to caluclate POT as per Rule 3.

Case1: Service is not leived

Case2: Service tax is leivable

Case3: Service tax is leivable 

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