Service Tax - POT Rules - Board Clarification
AS per Rule 7(c) of the Point of Taxation Rules 2011, the point of taxation in respect of individuals or proprietary firms or partnership firms providing taxable services referred to in sub-clauses (g) consulting engineer , (p) Architect, (q) Interior Decorator, (s) Chartered Accountant, (t) Cost Accountant, (u) Company Secretary, (za) Scientific and Technical consultancy and (zzzzm) Legal Consultancy, was the date on which payment was received or made.
Notification No. 4/2012 - Service Tax dated the 17th March 2012 amended the Point of Taxation Rules 2011 with effect from 1st April 2012, amending Rule 7 The provisions have been amended both in the Point of Taxation Rules 2011 and the Service Tax Rules 1994 such that from 1st April 2012 the payment of tax shall be allowed to be deferred till the receipt of payment upto a value of Rs 50 lakhs of taxable services. The facility has been granted to all individuals and partnership firms, irrespective of the description of service, whose turnover of taxable services is fifty lakh rupees or less in the previous financial year.
Board has received representations, in respect of the specified eight services, requesting clarification on determination of point of taxation in respect of invoices issued on or before 31st March 2012 where the payment has not been received before 1st April 2012.
Board Clarifies:
For invoices issued on or before 31st March 2012, the point of taxation shall continue to be governed by the Rule 7 as it stands till the said date. Thus in respect of invoices issued on or before 31st March 2012 the point of taxation shall be the date of payment.
Circular No. , Dated : March 28, 2012