Please Help: Service Tax
Posted Date : 25-Oct-2013 , 11:18:51 am | Posted By CA.VIRAL JANI
As per Service Tax reverse charge mechanic, Service tax is payable by service receiver when actual payment is made to service provider and not on receipt of Invoice from service provider i.e. Point of taxation will be the date on which payment is made to service provider.
However, if payment is not made to service provider within 6 months of the date of the invoice, service tax is anyway payable by service receiver (Invoice must be issued within 30 days of completion of service). Interest is also payable in such case.
However, If approved Invoice from consultant engineer in respect of Works Contract is not received by service receiver even after 8 months.
When liability to pay service tax arise ? as value of Invoice is not finalized still and clear till receipt of invoice.
However, if payment is not made to service provider within 6 months of the date of the invoice, service tax is anyway payable by service receiver (Invoice must be issued within 30 days of completion of service). Interest is also payable in such case.
However, If approved Invoice from consultant engineer in respect of Works Contract is not received by service receiver even after 8 months.
When liability to pay service tax arise ? as value of Invoice is not finalized still and clear till receipt of invoice.
Category : Service Tax | Answers : 0 | Comments : 1 | Hits : 343
Answers
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Anuj Gupta
27-Oct-2013 , 06:11:51 pmService receiver has to pay service tax on the basis of Rule-7, Point of taxation rules, 2011, I.e., earlier of date of payment or the completion of service (not date of invoice, as invoice is not issued within the time frame of Rule 4A of Service tax Rules, 1994). in nutshell, you are required to make payment on every advance payment made.