Please Help: Service Tax
Posted Date : 16-Dec-2011 , 02:25:38 pm | Posted By CA Vinod Kumar
Is the Accrual rule for payment of service tax is also applicable in case of proprietorship firm ?????
Category : Service Tax | Answers : 2 | Comments : 1 | Hits : 314
Answers
Answer By: Ashish Karundia
Dear Vinod,
As per Rule 7 (c) of Point of Taxation Rules, 2011 individuals or proprietary firms or partnership firms providing taxable services referred to in sub-clauses (p), (q), (s), (t), (u), (za), (zzzzm) of clause (105) of section 65 of the Finance Act, 1994,the point of taxation shall be the date on which payment is received or made, as the case may be.
Thus, if the proprietor ship firm is providing services referred to in above, the accural rule i.e. POT Rules is not applicable.
Hope the above suffice.
As per Rule 7 (c) of Point of Taxation Rules, 2011 individuals or proprietary firms or partnership firms providing taxable services referred to in sub-clauses (p), (q), (s), (t), (u), (za), (zzzzm) of clause (105) of section 65 of the Finance Act, 1994,the point of taxation shall be the date on which payment is received or made, as the case may be.
Thus, if the proprietor ship firm is providing services referred to in above, the accural rule i.e. POT Rules is not applicable.
Hope the above suffice.
Answer By: Puneet Goyal
It will also include the service provided by Consulting Engineer u/s 65(105)(g)
Comments
Puneet Goyal
16-Dec-2011 , 06:38:46 pmDear Vinod Ashish is absolutely right.