Service tax return

Dear  Prasad ,

IF the   '  new  point of Taxation Rule  is  applied  with old format of Return   would it not  be a problem specially where :

*  in  Point No. 1 of  Payable Sheet    >>>>> Gross amount received in money .......  to be filled up with  teh value of  Invoice raised during that period .

* in item  No. b) of same point no . 1 >>>>>> money equivalent of Consideration received in form other than money ....................  what it should be ? 

Kindly reply .

Dear Debashis,

There is no need to change in the return format (ST3) and you should filed the ST Returns in the old format only, however taking the tax liablity as per the point of taxation rules given under here:

Transitional Provisions.-

Nothing contained in these rules shall be applicable,-

(i) where the  provision of service is completed; or

(ii) where invoices are issued prior to the date on which these rules come into force.

Provided that services for which provision is completed on or before 30th day of June, 2011 or where the invoices are issued upto the 30th day of June, 2011, the point of taxation shall, at the option of the taxpayer, be the date on which the payment is received or made as the case may be.

Dear  Pavan ,

If  we provide service  to  our Operator through out the year ....

in that case , ,,,,,,,,,,,,,,,,,,  the Invoice  issued  on our  before 30th June 11  ,  taxability may be on the basis of Payment Received .

However ,in  the case of Invoices which are raised after 30. 6.11  ..................  Taxability would be on the basis of value of Invoice raised  and not on  payment received / paid .

Am  I  right .