vaibhav (student) (253 Points)
01 April 2014Serivce tax payment due date for the March month was 31.3.14. This provision is good as far as applicable to outward taxable services. However, whats about services upon which RCM applicable. If we have received bills late (i.e. mid of April'14) for vehicle hiring or works contract services. Whether, service tax amount upon these service can be deposited on 5.5.14? These expenses going to booked on 31.3.14.
And whether this service tax amount shown in Oct-Mar'14 service tax return?
Vishal Gupta
(CA)
(59 Points)
Replied 01 April 2014
Sorry, my earlier answer stands modified. Rule 7 of point of taxation rules, 2011 is applicable.
Rashmi
(CA Final Student)
(137 Points)
Replied 01 April 2014
Dear Vaibhav,
As per Rule 7 of Point of Taxation Rules, 2011, the point of taxtaion for service receiver is the date of payment of service. This implies that if in your case, even though the service has been provided in March 2014 but actual payment for the said service is made in April 2014, then tax liability shall arise in April only, which should be paid by 05.05.2014.
Therefore, irrespective of the date on which invoice has been issued to you or the date of completion of service, point of taxation for service receiver shall arise only upon the date of payment of service. If it's March, then tax due date is 31.03.2014 and if it's April, then 05.05.2014.
Accordingly, relevant period of return shall also be determined.
vaibhav
(student)
(253 Points)
Replied 01 April 2014
Tnx Vishal & Rashmi,
I have passed my RCM service tax liabilyt entry in expense booking (i.e. on accrual basis) through out the year. For March month's provisional entries, i may prepare a statement and booked in April and paid in 5.5.14.
Is it right way??
thnx again for valueable inputs.
CAclubindia
