nitin (C.A. Final 2nd group) (58 Points)
27 December 2011Hiiiii members.....
Please clarify me about the latest amendments in Service Tax payment i.e. payment on invoice or on provision basisi instead of receipt basis.....
Pls. also clarify me whether there is any exceptions for practicing Chartered Accountants...
Thanks.
CA PRABHAKAR JHA
(ACA)
(313 Points)
Replied 27 December 2011
Please read the article (on point of taxation by Mr. V S Datey) at following link:
https://dateyvs.com/sez_steel.htm
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 28 December 2011
Please refer to The Point of Taxation Rules, 2011 as amended:
Rule 3 has been amended to provide that the point of taxation shall be as follows:
(a) Date of invoice or payment, whichever is earlier, if the invoice is issued within the prescribed period of 14 days from the date of completion of the provision of service.
(b) Date of completion of the provision of service or payment, if the invoice is not issued within the prescribed period as above.
The applicability of the rule will be clear from the illustrations in the following table:
|
S. No. |
Date of completion of service |
Date of invoice |
Date on which payment recd. |
Point of Taxation |
Remarks |
|
1. |
April 10, 2011 |
April 20, 2011 |
April 30, 2011 |
April 20, 2011 |
Invoice issued in 14 days and before receipt of payment |
|
2. |
April 10, 2011 |
April 26, 2011 |
April 30, 2011 |
April 10, 2011 |
Invoice not issued within 14 days and payment received after completion of service |
|
3. |
April 10, 2011 |
April 20, 2011 |
April 15, 2011 |
April 15, 2011 |
Invoice issued in 14 days but payment received before invoice |
|
4. |
April 10, 2011 |
April 26, 2011 |
April 5, 2011 (part) and April 25, 2011 (remaining) |
April 5, 2011 and April 10, 2011 for respective amounts |
Invoice not issued in 14 days. Part payment before completion, remaining later |
K.chandrasekaran
(Partner)
(210 Points)
Replied 18 July 2012
The requirements are not all practicable and will result in needless harrassment to business people
CAclubindia
