Service Tax Rate 14% with Point
of Taxation Rules, 2011
Dear All
Central Government has enhanced the
rate of Service Tax Rate from 12.36% to 14% vide Notification 14/2015-ST dated
19th May, 2015. New rate of 14% is effective from 01st June, 2015.Pursuant
to the above stated increase, the rate of tax that would be applicable in
certain situations, as per the Point of Taxation Rule would be as under:-
|
S. No.
|
Taxable Service provided when-Before/After the notified date
|
Issue of Invoice when- Before/after the notified date
|
Receipt of Payment when- Before/after the notified date
|
Point of Taxation
|
Rate Applicable
|
|
a)
|
Before
|
After
|
After
|
Date of payment or issue of invoice whichever is earlier
|
14%
|
|
b)
|
Before
|
Before
|
After
|
Date of issue of Invoice
|
12.36%
|
|
c)
|
Before
|
After
|
Before
|
Date of Payment
|
12.36%
|
|
d)
|
After
|
Before
|
After
|
Date of Payment
|
14%
|
|
e)
|
After
|
Before
|
Before
|
Date of payment or issue of invoice whichever is earlier
|
12.36%
|
The following transitional issues merit
attention:·
·
In case of
situations stated in (c) & (e) above, in accordance with Rule 2A of POT
Rules if the payment is not credited in the bank within 4 working days from the
notified date, the new rate of 14% would apply.
·
In case of
situations stated in (d) above, service tax would have already been paid at the
old rate (12.36%) when the invoice was issued or payment received before the
change of rate of tax applying Rule 3 of POT Rules. However, due to subsequent
increase in rate, there would be a short payment which the assessee may have to
deposit. However, no interest would apply if the assessee deposits the
differential amount within the due date reckoned from the point of taxation.
Hope the
information/analysis helps you is assisting you in professional
endeavours.
Source : Point of
Taxation Rules, 2011
Gaurav Arya- www.caclubindia.com