Jyothis (Article) (1127 Points)
05 July 2016Service provider firm taxable services during last FY is less than 50 lakhs,due date of payment quarterly on July 6
What is the point of taxation in case
1.Date of invoice : April 2016
2.Date of payment : June 2016
Service tax paid by Assessee on receipt basis,so what is the P.O.T here.
Is it necessary to charge KKC as per rule 5 , in case of new levy of tax,charge @ 15%
mohammad rasool baig
(Management Consultant)
(1026 Points)
Replied 09 July 2016
In case of service tax on receipt basis means service tax needs to be paid only when the amount is received by the service provider, This facility is provided to small service providers in order to avoid cash crrunch to small firms or service providers.
So due date will be date of payment which is June 2016.
As far as KKC is concerned, If services are provided before June 2016 & invoice also raised before June 2016. Then KKC will not be applicable.
Rashi Bajaj
(CA)
(752 Points)
Replied 12 January 2017
Agreed with Mr. Baig.
POT and Liability to remit tax to govt. While POT determines the amount of liability (in case of rate changes and exemption notifications), Exemption to Small service provider (SSP) only states that the liability computed as per POT rules is to be paid only of actual collection of invoice amount. This is only to facilitate SSPs to pay Tax at a later stage without being liable to interest and penalties.
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