point of taxation rules

We are delighted to inform you that the Indirect Taxes Committee has come out with an “E-Handbook on Point of Taxation Rules, 2011”.  The electronic form of the Handbook increases its portability and allows you to access the same at any time and from any place convenient to you, thereby making it a ready referencer [...] Full Article

The question before us is what would be the rate of tax where (a) the service is provided by the chartered accountants prior to 01.04.2012; (b) the invoice is issued by the chartered accountants prior to 01.04.2012 but (c) the payment is received after 01.04.2012. Full Article

Point of Taxation Rules -Is it determining the taxable event for levy of Service Tax (i.e. service deemed to be provided). RULE 2A - Date of payment.— For the purposes of these rules, 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: Full Article

I am covering following points in this article- Valuation of service portion in works contract, CENVAT Credit availability in works contract, Point of Taxation in Work Contract Service Full Article

CENTRAL Board of Excise and Customs (CBEC) has issued clarification vides Circular No. 158/9/ 2012–ST dated. 8th May, 2012 on the rate of service tax applicable wherein invoices were raised before 1st April 2012 and the payments shall be after 1st April 2012 in case of the 8 specified services provided by individuals or proprietary firms or partnership firms, to which Rule 7 of Point of Taxation Rules 2011 was applicable and services on which tax is paid under reverse .. Full Article

Circular No.155/6/ 2012 – ST It has been brought to the attention of the Board that some airlines are collecting differential service tax on tickets issued before 1st April 2012 for journey after 1st April 2012, causing inconvenience to passengers. Representations have also been received in this regard. The position of law in the above respect is clear and is detailed below. Full Article

In case of individual / partnership firms (including LLPs) whose aggregate value from one or more premises is 50 lakhs or less in previous financial year , the service provider may pay tax on receipt basis upto 50 lakhs taxable value. Beyond 50 lakhs, service tax will have to be paid on the mercantile basis on the basis of issue of invoice. Full Article

As you all may be aware , as per the Finance Bill, 2012, service tax shall be leviable @ 12.36% w.e.f from 1st April, 2012. As per rule numbered 4 and 7 of Point of Taxation Rules, read with Section 38A of Central Excise Act, 1944, for any payment received on or after 01/04/2012 against invoices raised on or before 31/03/2012, service tax at the rate of 12.36% shall be applicable. Full Article

The Bank audit could have commenced in March 2012, however the completion of the services would be in April/ May 2012. Since the completion of service is important, as per the Point of Taxation Rules {POTR} the rate of service tax would be: Basic- 12% EC- 0.24 SHEC- 0.12- Total 12.36%. Full Article

The Finance Act, 2011 has introduced with effect from April 1, 2011, Point of Taxation Rules in which, these rules will determine the point in time when the services shall be deemed to be provided. The general rule will be that the time of provision of service will be the earliest of the following dates: i. Date on which service is provided or to be provided ii. Date of invoice iii. Date of payment Full Article