PoT- Simplified Version - Must Read for May-June 2016 Exams

Dial: 9791 432 234 Mail: askmrgst@gmail.com Mr. GST CMA Loganathan Sekar Point of Taxation applicable for May/June 2016 Exams Point of Taxation Rules, 2011 Wisdom Institute of Finance and Accounts Rule Coverage Rule 2A Date of Payment Rule 2C Continuous supply of Service Rule 3 Determination of Point of Taxation Rule 4 Determination of Point of Taxation in case of change in effective rate of Tax Rule 5 Payment of Tax in case of New Service Rule 6 Omitted Rule 7 Determination of Point of Taxation in case of specified services or persons Rule 8 Determination of Point of Taxation in case of copyrights, etc Rule 8A Determination of Point of Taxation in other cases Rule 9 Transitional Provisions Mr. GST CMA Loganathan Sekar Dial: 9791 432 234 Mail: askmrgst@gmail.com Point of Taxation Rules, 2011 RULE 2A Date of Payment Scenario – when change in e.r.t or new levy between date of book entry and credited to bank (not cash) Rule - Date of payment shall be the earlier of the dates on which the payment is entered in the books of accounts or is credited to the bank account of the person liable to pay tax W.e.f 1-4-2012 Wisdom Institute of Finance and Accounts Books of A/C Bank Payment Whichever is Earlier New Levy or CERT Mr. GST CMA Loganathan Sekar Dial: 9791 432 234 Mail: askmrgst@gmail.com Point of Taxation Rules, 2011 RULE 2C Continuous supply of Service any service which is provided, or to be provided continuously or on recurrent basis, under a contract, for a period exceeding three months with the obligation for payment periodically or from time to time or where the Central Govt. by notification in the Official Gazette, prescribes provision of a particular service to be a continuous supply of service, whether or not subject to any condition. Wisdom Institute of Finance and Accounts Continuous flow of services more than THREE MONTHS Mr. GST CMA Loganathan Sekar Dial: 9791 432 234 Mail: askmrgst@gmail.com Point of Taxation Rules, 2011 Rule 3 Determination of Point of Taxation Wisdom Institute of Finance and Accounts S SI P Invoice issued within 30 days POT = I or P Whichever is earlier Rule 3 (a) Invoice not issued within 30 days POT = S or P Whichever is earlier Rule 3 (b) Mr. GST CMA Loganathan Sekar Dial: 9791 432 234 Mail: askmrgst@gmail.com Point of Taxation Rules, 2011 Rule 3Determination of Point of Taxation Test yourself by answering the below without turning to next slide  Wisdom Institute of Finance and Accounts S. No Service (S) Invoice (I) Payment (P) POT Invoicing Rule 1 10th Apr, 2013 20th Apr, 2013 30th Apr, 2013 20th Apr, 2013 Within 30 days I/P (w.e) 2 10th Apr, 2013 6th May, 2013 30th May,2013 6th May, 2013 Within 30 days I/P (w.e) 3 10th Apr, 2013 6th May, 2013 30th Apr, 2013 30th Apr, 2013 Within 30 days I/P (w.e) 4 25th Apr, 2013 20th Apr, 2013 2nd Apr, 2013 2nd Apr, 2013 Within 30 days I/P (w.e) 5 10th April, 2013 16th May, 2013 30th May, 2013 10th Apr, 2013 Beyond 30 days S/P(w.e) Mr. GST CMA Loganathan Sekar Dial: 9791 432 234 Mail: askmrgst@gmail.com Point of Taxation Rules, 2011 Rule 3Determination of Point of Taxation (a) Date of invoice or payment, whichever is earlier, if the invoice is issued within the prescribed period of 30 days from the date of completion of the provision of service (W.e.f. 1-4-2012). (b) Date of completion of the provision of service or payment, whichever is earlier if the invoice is not issued within the prescribed period. Wisdom Institute of Finance and Accounts S. No Service (S) Invoice (I) Payment (P) POT Invoicing Rule 1 10th Apr, 2013 20th Apr, 2013 30th Apr, 2013 20th Apr, 2013 Within 30 days I/P (w.e) 2 10th Apr, 2013 6th May, 2013 30th May,2013 6th May, 2013 Within 30 days I/P (w.e) 3 10th Apr, 2013 6th May, 2013 30th Apr, 2013 30th Apr, 2013 Within 30 days I/P (w.e) 4 25th Apr, 2013 20th Apr, 2013 2nd Apr, 2013 2nd Apr, 2013 Within 30 days I/P (w.e) 5 10th April, 2013 16th May, 2013 30th May, 2013 10th Apr, 2013 Beyond 30 days S/P(w.e) Mr. GST CMA Loganathan Sekar Dial: 9791 432 234 Mail: askmrgst@gmail.com Point of Taxation Rules, 2011 Rule 4 (a) Determination of Point of Taxation in case of change in effective rate of Tax – services provided before CERT Wisdom Institute of Finance and Accounts P SI Invoice issued before CERT Payment Received after CERT POT = I Rule 4 a (ii) Invoice issued and Payment received after CERT POT = P or I Whichever is earlier Rule 4 a (i) Payment Received before CERT but invoice issued after CERT POT = P Rule 4 a (iii) Mr. GST CMA Loganathan Sekar Point of Taxation Rules, 2011 Rule 4 (b) Determination of Point of Taxation in case of change in effective rate of Tax – services provided after CERT Wisdom Institute of Finance and Accounts P SI Invoice issued before CERT Payment Received after CERT POT = P Rule 4 b (i) Invoice issued and Payment received before CERT POT = I or P Whichever is earlier Rule 4 b (ii) Invoice issued after CERT but Payment Received before CERT POT = I Rule 4 b (iii) Mr. GST CMA Loganathan Sekar Point of Taxation Rules, 2011 Rule 5 Payment of Tax in case of New Service Wisdom Institute of Finance and Accounts No tax shall be payable (5a) to the extent the Invoice has been issued and the payment received against such invoice before such service became taxable. No tax shall be payable (5b) if the payment has been received before the service becomes taxable And invoice has been issued within 14 days of the date when the service is taxed for the first time. Mr. GST CMA Loganathan Sekar Dial: 9791 432 234 Mail: askmrgst@gmail.com Point of Taxation Rules, 2011 Rule 7 Determination of Point of Taxation in case of specified services or persons (Reverse Charge) Shall be the date on which payment is made within 3 months from the date of invoice Provided that, where payment is not received within a period of 3 months from the date of Invoice, the POT shall be determined as if this rule does not exist (Rule 3) Wisdom Institute of Finance and Accounts Mr. GST CMA Loganathan Sekar Dial: 9791 432 234 Mail: askmrgst@gmail.com Point of Taxation Rules, 2011 Rule 8 Determination of Point of Taxation in other cases (copyrights, etc) Rule 8 – In case of royalties or payments relating to copy rights, trade marks, designs, where the whole amount of consideration is not ascertainable, then POT as per the above. Rule 8 (a) Where the POT cannot be determined (Best Judgement Method)  as the date of Invoice or date of Payment or both are not available the Central Excise Officer may require the concerned person to produce such accounts, documents or other evidence as he may deem necessary shall by an order in writing, after giving an opportunity of being heard determine the POT to the best of his judgments. Wisdom Institute of Finance and Accounts SI P Whichever is Earlier Mr. GST CMA Loganathan Sekar Dial: 9791 432 234 Mail: askmrgst@gmail.com