Service Tax : We have updated the Point of Taxation Rules 2011 as introduced by Notification No. 18/2011-S.T., dated 1-3-2011 with Notification ...
Service Tax : The Point of Taxation Rules, 2011 (in short POT Rules) was introduced w.e.f. 01-04-2011 to define and determine the point of taxat...
Service Tax : Requirement of completion certificate vary from state to state. In case of Mumbai local authority provides for completion certific...
Service Tax : The Point of Taxation Rules, 2011 were notified on March 1, 2011 and have been amended from time to time. As mentioned in my earli...
Excise Duty : Cenvat credit in respect of input to be claimed within six months from the duty paying document with effect from 01.09.2014. [ Not...
Service Tax : The Bank audit could have commenced in March 2012, however the completion of the services would be in April/ May 2012. Since the c...
Service Tax : Ministry of Finance has today issued the above Notification amending Point of taxation Rules, 2011. Rules 7 has been substituted ...
Service Tax : The Point of Taxation rules, which will allow tax authorities to link the payment of service tax to provision of service, raising ...
Service Tax : The finance ministry is in a fix over the proposed implementation of point of taxation rules for service tax from October 1 this y...
Service Tax : The Government of India (“GOI”) has released the draft Point of Taxation (for Services provided or Received in India) Rules, 2...
Service Tax : CESTAT emphasized that Point of Taxation Rules are not applicable when service is provided, and invoice is issued before introduc...
Service Tax : Recently, in Union of India v. Intercontinental Consultants and Technocrats Pvt. Ltd., Hon’ble SC had resolved the existing con...
Service Tax : 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...
Service Tax : Where there is change in the liability or extent of liability of a person required to pay tax as recipient of service notified und...
Service Tax : Circular No.155/6/ 2012 – ST It has been brought to the attention of the Board that some airlines are collecting differential se...
Service Tax : As you are aware, the Point of Taxation Rules (PTR) were formulated vide Notification No.18/2011-ST dated 01.03.2011. Based on th...
As you are aware, the Point of Taxation Rules (PTR) were formulated vide Notification No.18/2011-ST dated 01.03.2011. Based on the feedback, certain amendments are being carried out in these rules vide Notification No. 25/2011-ST dated 31.03.2011. The highlights of the changes are discussed in the following paragraphs. 2. While the rules shall come into force from 01.04.2011, an option has been given in rule 9 to pay tax on payment basis, as at present, till 30.06.2011. 3. Rule 3 has been amended to provide that the point of taxation shall be as follows: (a) Date of invoice or payment, whichever is earlier, if the invoice is issued within the prescribed period of 14 days from the date of completion of the provision of service.
Before making an attempt to understand provisions of Point of Taxation Rules, 2011 (PoTR), it will be necessary to explore the meaning of certain terminology used. In the process of taxation, the first step is levy of tax. Levy is linked with certain event. On triggering of the certain event, the transaction becomes taxable. It is known as Taxable Event. In the second stage, once an event has become taxable, the question of collection of tax will arise. The statute will provide for the event or time whereat it will become point of taxation. In the third step, the statute will provide for the time period or another event on occurring of which tax will have to be paid. Thus, as can be seen, the concept of levy, collection and payment of tax are fundamental aspects of any fiscal law. For example, in case of CE, under the Central Excise Act, 1944 duty is levied on excisable goods produced or manufactured in India. Under Central Excise Rule, 2002 CE duty is required to be paid on removal of goods from factory or warehouse. Thus, levy of duty is on manufacture or production of goods which is the taxable event and point of taxation is the removal of goods. Actual payment of duty is governed by the Excise Rules which is generally the 5th or 6th date of the month following the month in which goods are removed.
Point of Taxation Rules, 2011 have been framed vide notification 18/2011-ST and made effective from 01.04.2011. These rules 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:
The Point of Taxation rules, which will allow tax authorities to link the payment of service tax to provision of service, raising of invoice or payment for service — whichever is the earliest — may not be introduced in this financial year. The financ
The finance ministry is in a fix over the proposed implementation of point of taxation rules for service tax from October 1 this year, with the industry resisting transition to the accrual basis for taxation of services. Simply put, under the accrual
If one was to trace the key milestones in the evolution of service taxation in the country, reference will have to be made of import and export rules for services. Equally important and which probably should have been introduced much earlier, are the
The Government of India (“GOI”) has released the draft Point of Taxation (for Services provided or Received in India) Rules, 2010 (“Draft Rules”) for public scrutiny, comments and proposals. To provide clarity in matters of levy and collection of service tax in cases of change of rate of service tax or imposition of service tax on new services and to To align payment of service tax with the Value Added Tax and Excise regimes for easier transition to Goods and services Tax.
Pending roll out of the much awaited Place of Supply Rules for Services, which was announced in Union Budget 2010-11 speech, the Government Of India has published the Draft Point of Taxation (For Services Provided or Received in India) Rules (‘the draft Rules’) for services alongwith Explanatory Notes to the Rules. The Rules are proposed to be issued by exercising the powers conferred under Section 94 (2) (hhh) of the Finance Act, 1994 (‘the Act’).
