Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: VAT RATES :: VAT Audit :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: TDS :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: cpt
 
 
Service Tax »
 GST: When does a service provider need to register across multiple states?
 GST Council to examine sectoral issues in August 5 meet
 Number of taxpayers under GST set to eclipse that of previous tax regime
 Goods and Services Tax will accelerate growth,
  Central Goods and Services Tax (CGST) Rules, 2017
 Goods bought with loyalty points will face tax under GST
 substitution of Service Tax by Goods and Services Tax (GST)
 Income Tax: TDS deducted but ITR not filed? Here's what professionals need to do
 9 ways GST could impact home buyers
 Consumers hailed GST, but there's need for awareness'
 Tax departments keep a close watch on prices post GST rollout

Service providers foxed by new tax rule
March, 22nd 2012

The Budget has left several service providers ranging from tax consultants to travel agents, architects to interior decorators, in a quandary over the new rate of service tax, which has been hiked from 10% to 12% with effect from April 1.   A few of these service providers

raise invoices or bills for the services provided by them several months later and realisation of payment takes place then. The issue of debate is whether one would have to pay 12% service tax for a service rendered before March 31, but bill raised and payment received thereafter?
The service tax department has clarified that in such cases where services have been rendered before or on March 31, would attract 10% tax, though payment can be received on a later date.

"Against a service rendered by a small and medium service provider before or on March 31 and the bill raised and payment is received after it, the tax will be charged at 10%," said VK Garg. joint secretary, Central Board of Excise and Customs (CEBC).

As a word of caution, Garg said that the mere issuing of invoice, without providing service would not benefit service providers.

"If someone raises an invoice before March 31 and provides service after this date to avoid paying 12% tax, it will be considered as a case of tax evasion," said Garg.

CBEC may initiate action against such tax evaders.

"This clarification will be beneficial for professional service providers, as realisation of payment takes at a much later date from the date of providing service," said JK Mittal, chairman, Indirect Tax Committee, PHD Chamber.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions