M.R.Marimuthu (Tax Consultant) (64 Points)
18 June 2015what is the point of taxation for the followimg conditions.the contrat was entered in june 2012.The work was completed in may 2015.The invoice is raied in june 2015.
what is the point of taxation anybody can explain
ROSHAN PAUL JOSEPH
(CA Final student)
(311 Points)
Replied 18 June 2015
Please mention the date of invoice and date of receipt of payment
ACCOUNTANT
(Student)
(559 Points)
Replied 18 June 2015
Point of taxation is the time of receipt of FEES or DATE of Completion of Work Whichever is earlier., if fee is received before contract completion such date., or the DATE of INVOICE or date of completion of work.If date of Invoice is unvailable, date of entering of contract.,
Pl do correct me on mistaking.,
ROSHAN PAUL JOSEPH
(CA Final student)
(311 Points)
Replied 18 June 2015
A summary of the applicable rate in accordance to Rule 4 is provided below:
|
Sr. No. |
Provision of an activity |
Point when the Invoice is raised |
Point when the payment is received |
Point of Taxation |
Rate of S.T. |
|
|
01. |
Before rate change |
After rate change |
After rate change |
Date of invoice or payment which is earlier |
14% |
|
|
02. |
Before rate change |
Before rate change |
After rate change |
Date of invoice |
12%## |
|
|
03. |
Before rate change |
After rate change |
Before rate change |
Date of payment |
12%## |
|
|
04. |
After rate change |
Before rate change |
After rate change |
Date of payment |
14% |
|
|
05. |
After rate change |
Before rate change |
Before rate change |
Date of invoice or payment which is earlier |
12%## |
|
|
06. |
After rate change |
After rate change |
Before rate change |
Date of invoice |
14% |
|
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 18 June 2015
So in this case, provision of service is may 15 and invoice raised in june 15, so if payment for the same is also made in june or later, than 14% but if payment is received before june 15, then 12.36%
Sanjay Acharya
(Accounts Executive)
(23 Points)
Replied 19 June 2015
Dear Sir,
we are service provider, service provided to Maharasthra State, material is not ours we are providing only servies for material, service tax is applicable on value 40% 0r 100%?
CA. Ankit Chandrakar
(chandrakar.ankit@gmail.com)
(1082 Points)
Replied 19 June 2015
Given your conditions, if payment was made prior to 01.06.15, the rate will be 12.36% BUT if the payment has been made on or after 01.06.15 the rate shall be 14%.
CA Kaivalya
(Finance Professional)
(31 Points)
Replied 20 June 2015
Point of taxation will determined based on 3 conditions:
1. Completion of service date
2. Invoice date
3. Payment date
If any 2 of the above conditions occur on or before May 31, 2015 then rate is 12.36%. Otherwise the rate is 14%.
In your case, Completion of service date is prior to May 31 & Invoice date is June 2015.
Assuming that payment has not been made in advance, the tax rate applicable is 14%.
Sanjay Acharya
(Accounts Executive)
(23 Points)
Replied 22 June 2015
We are chargead service tax is 14%, but my question is, it is 40% on basic value or 100%?
1. service for material & civil work
2. Material is not our's
Sanjay Acharya
(Accounts Executive)
(23 Points)
Replied 22 June 2015
IF you have any service tax chart can you please send me once.
CAclubindia
