690-692
TRANSCRIPT
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178 Systematic Approach to Service Tax Chap. 22
S.No. Particulars Amount ()
(iii) Bills in respect of which payment was not received until 31.03.2012 o ad!ustment is re"uired #ecause accordin$ to Rule 3 of Point ofTaxation Rules, 2011 where invoice is issued within 1% days from the
date of completion of the service& the 'oint of aation will #e earlierof the followin$ two dates*(a) Issue of Invoicefor the service provided or to #e provided+ or(b) ,ate of payment to the etent it is received
-n the a#sence of any specific information in the "uestion& it isassumed that invoice has #een issued within 1% days from the date of
completion of the taa#le service. onse"uently& service ta isre"uired to #e paid on the basis of issue of invoiceeven if no payment
has #een received until 31.03.2012.
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(iv) Add* mount of advance received on 2.03.2012 is to #e included inthe taa#le value of services #ecause accordin$ to Explanationappended to Rule 3 of Point of Taxation Rules, 2011 wherever any
advance #y whatever name nown is received #y the service providertowards the provision of taa#le service& the point of taation shall #e
the date of receipt of each such advance.`
1,10,300 100110.3
1&00&000
!alue of Taxable "e#vices 17&00&000
$b% &'ount of se#vice tax pa(able
S.No. Particulars Amount
(i) alue of aa#le 4ervices 17&00&000
(ii) 4ervice a 5 10.306 1&7&100
$c% )ast date of se#vice tax pa(able
4ince the 4ervice a is re"uired to #e paid for the month of arch 2012& last date for main$payment of 4ervice a paya#le will #e 31.03.2012 in accordance with second proviso to ule 9(1)of 4ervice a ules& 1::%.
22.* +hat ill happen if the effective #ate of se#vice tax chan-es befo#e o# afte#
#ende#in- of a se#vice Rule /
;hen there is a chan$e in rate of service ta the point of taation shall #e determined
in the followin$ manner*1. ;here a taa#le service has #een provided #efore the chan$e in effective rate of
ta and the invoice for the said taa#le service has #een issued and the payment
for the same has #een received after the chan$e in effective rate of ta then the
point of taation shall #e the date of payment or the date on which the invoice
has #een issued& whichever is earlier.
2. ;here a taa#le service has #een provided #efore the chan$e in effective rate of
ta and the invoice has #een issued #efore the chan$e in effective rate of ta #ut
the payment for the same has #een received after the chan$e in effective rate of
ta then the point of taation shall #e the date on which the invoice has #een
issued.
3. ;here a taa#le service has #een provided #efore the chan$e in effective rate of
ta and the payment for the same is received #efore the chan$e in effective rate
of ta #ut the invoice has #een issued after the chan$e in effective rate of tathen the point of taation shall #e the date when the payment has #een received.
%. ;here a taa#le service is provided after the chan$e of effective rate of ta and
the payment is received after the chan$e in effective rate of ta #ut the invoice
for the said taa#le service is issued prior to the chan$e in effective rate of ta
then the point of taation shall #e the date of payment.
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17: Systematic Approach to Service Tax Chap. 22
;here a taa#le service is provided after the chan$e in effective rate of ta and
the invoice for the same is issued and the payment for the said invoice is
received #efore the chan$e in effective rate of ta then the point of taation shall
#e the date when the payment was received or the date when the invoice wasissued whichever is earlier.
9 ;here a taa#le service is provided after the chan$e in effective rate of ta and
the invoice is issued after the chan$e in rate #ut the payment is received #efore
the chan$e in rate of ta then the point of taation shall #e the date when the
invoice has #een issued.
&n Exa'ple* a ate upto 30.:.2011 10.306
a ate from 1.10.2011 12.396
Situation
s
Service
Provided
Invoice
Raised
Payment
Received
Point of
Taxation
Rate
1 28.:.2011 3.10.2011 10.10.201
1
3.10.2011 12.396
2 28.:.2011 30.:.2011 10.10.2011 30.:.2011 10.36
3 28.:.2011 3.10.2011 30.:.2011 30.:.2011 10.36
% 3.10.2011 28.:.2011 .10.2011 .10.2011 12.396
3.10.2011 28.:.2011 30.:.2011 28.:.2011 10.36
9 3.10.2011 .10.2011 28.:.2011 .10.2011 12.396
22. Pa('ent of tax in case of a ne se#vice Rule *
-n case of new service which was hitherto not covered under any of the clause ofsection 9(10) and is taed for the first time&/
(a) no ta shall #e paya#le to the etent the invoice has #een issued and the
payment received a$ainst such invoice #efore such service #ecame taa#le.
he word
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Chap. 22 Payment of Service Tax 180
Sl. No. Situation Point of Taxation
%. -nvoice issued #efore completion of milestonefor
payment.
,ate of invoice
. o milestonefor payment a$reed in the contractand no amount received till completion of service
and -nvoice raised with 1% days from completion.
,ate of invoice
9. o milestone for payment a$reed in the contract
and no amount received till completion of service
and invoice not issued.
,ate of completion of
service
7. o milestone for payment and part amount
received #efore completion
,ate of such receipt.
Note./ilestone means the completion of an event a terms of a contract.
22.5 ete#'ination of point of taxation in case of specified se#vices o# pe#sons Rule
s per the provisions of rule 7& in case of followin$ specified classes of persons?
services& the point of taation shall #e the date of main$ or receivin$ the payment& as the
case may #e& namely*(i) @port of services as per @port of 4ervices ules& 200+
(ii) 'ersons& where the o#li$ation to pay ta is on the service recipient in terms of
rule 2(1)(d) read with section 98(2) of the Ainance ct& 1::%+
(iii) -ndividuals& proprietorships and partnership firms providin$ followin$ taa#le
services+ namely/
(a) hartered ccountant&
(b) ost ccountant&
(c) ompany 4ecretary&
(d) rchitect&
(e) -nterior ,ecorator&
(f) e$al onsultancy 4ervice.
() 4cientific and echnical onsultancy 4ervice.
(h) onsultin$ @n$ineer 4ervice&
he #enefit shall not #e availa#le in case of any other service also supplied #y
the person concerned alon$ with the specified services.
1. In case of export of services referred to in clause (i) above, where payment is not receivedwithin the period specified by the Reserve Bank of India, the point of taxation shall bedetermined, as if this rule does not exist i.e.instead of the date of receipt of payment, pointof taxation shall be determined as discussed above in rule 3 of these rules.
2. In the case of services where the recipient is obligated to pay service tax referred to clause(ii) above, if the payment is not made within six months of the date of invoice, the point oftaxation shall be determined as if this rule does not exist i.e.instead of the date of makingthe payment, point of taxation shall be determined as discussed above in rule 3 of theserules.
3. In case of "associated enterprises", where the person providing the service is located
outside India, the point of taxation shall be the date of credit in the books of account of theperson receiving the service or date of making the payment whichever is earlier.
Illust#ation 22.2
C& a practicin$ hartered ccountant provides the followin$ particulars for the Duarter endin$31.12.2011. ll #ills raised #y C are inclusive of "e#vice Tax, if applicable.
!ate Particulars Amount
2.0:.201 Bill o. 1010 in r?o 4tatutory udit Aee char$ed to td. 3&00&000
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181 Systematic Approach to Service Tax Chap. 22
!ate Particulars Amount
1
0.10.2011
Bill o. 1011 in r?o -nternal udit Aee char$ed to 4 td. 2&%0&000
1:.10.201
1
mount eceived from td. in respect of Bill o. 1010 3&00&000