What is the point of taxation for new service tax rate 14%

Others 784 views 9 replies

what 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

Replies (9)

Please mention the date of invoice and date of receipt of payment

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.,

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%

 

 

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%

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%?

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%.

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%.

 

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

IF you have any service tax chart can you please send me once.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register