Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get 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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: VAT Audit :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: TDS :: due date for vat payment :: VAT RATES :: cpt :: Central Excise rule to resale the machines to a new company
 
 
Service Tax »
 Step by Step Guide for GST Enrolment for existing Central Excise / Service Tax Assessees
  Smart things to know about income tax refunds
 Further clarification to Circular No. 1/2017 - GST dated 21st July, 2017.
 GST Return Filing: How to handle discounts and additional cost
 GST base looks set to be at least 25% wider than earlier tax regime
 Businesses struggle with multiple tax rates, returns
 Common use items exempt from e-way bill provision under GST
 Goods And Services Tax Sends Taxes Racing
 How GST lesson can unleash untapped potential of education sector in India
 Services sector PMI falls most in 4 years on GST
 Missing column in GSTR 3B form leaves input claims a shaky edifice

Service tax liability too fixed at invoice stage
April, 04th 2011

The Central Board of Excise and Customs has tweaked service tax rules, making service providers liable to pay tax as soon as they issue an invoice to their clients.

Under the earlier rules, service tax became due only when a provider received payment for the service. This was at variance with the taxation of goods.

States levy sales tax (value-added tax) on goods when the invoice is issued. Excise duty is also paid at the factory gate when the goods leave the factory on issuance of an invoice.

The new rules provide a consistent regime for taxation of goods and services and aim to set the stage for the Goods and Services Tax (GST), which the government intends to roll out from April 2012.

The Central Board of Excise and Customs had put out a draft of these rules for discussion in August last year. "The rules have been changed following public feedback," a finance ministry official said. In cases where an invoice is issued periodically or not issued within 14 days of completion of service, a service provider will have to pay tax on completion of the service.

For instance, in services such as telecommunications, construction and works contracts, service tax would become due after the completion of service or the date of completion mentioned in the contract.

The new rules, however, offer relief to individuals, proprietory or partnership firms that provide services such as architecture, interior decoration, chartered accountancy, cost accountancy, scientific or technical consultancy and legal services.

These service providers will be required to pay tax only after they receive payment. Although the government had begun taxing services in 1994, the need for rules aligning them with the taxation of goods was felt only now when the government is getting ready to roll out the GST.

The new rules will determine the clear time of delivery of a service and reduce chances of a dispute under the GST regime, which will allow states to tax services. "The introduction of point of taxation rules is an effort to align the way tax is paid on goods and services. However, the rules should have been kept simple as a harbinger of a simple GST," said Bipin Sapra, partner, Ernst & Young.

The Central Board of Excise and Customs has also simplified Cenvat credit rules in line with the changes. Service providers will now be able to claim credit for tax already paid on inputs on receipt of invoice as against on payment of value of taxable service along with service tax.

The government has also introduced three slabs for service tax on money changing but exempted inter-bank transactions. In high value transactions, the total service tax has been capped to a maximum of Rs 5,000. The Budget for 2011-12 had proposed a 0.1% levy on value of transaction, but the Indian Banks Association and forex dealers had protested against it.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

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