Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Tax Research Unit
Circular No.154/5/ 2012 – ST
Room No 146, North Block, New Delhi
Dated: 28th March 2012
To
Chief Commissioner of Customs and Central Excise (All)
Chief Commissioner of Central Excise & Service Tax (All)
Director General of Service Tax
Director General of Central Excise Intelligence
Director General of Audit
Commissioner of Customs and Central Excise (All)
Commissioner of Central Excise and Service Tax (All)
Commissioner of Service Tax (All)
Madam/Sir,
Subject: - Clarification on Point of Taxation
Rules - regarding.
-
Notification No.4/2012 - Service Tax dated the 17th March 2012 has
amended the Point of Taxation Rules 2011 w.e.f. 1st April 2012, inter- alia,
amending Rule 7 which applied to individuals or proprietary firms or
partnership firms providing taxable services referred to in sub-clauses (g),
(p), (q), (s), (t), (u), (za) and (zzzzm) of clause (105) of section 65 of
the Finance Act, 1994. Rule 7 determined the point of taxation in such cases
as the date of receipt of payment. The provisions have been amended both in
the Point of Taxation Rules 2011 and the Service Tax Rules 1994 such that
from 1st April 2012 the payment of tax shall be allowed to be deferred till
the receipt of payment upto a value of Rs 50 lakhs of taxable services. The
facility has been granted to all individuals and partnership firms,
irrespective of the description of service, whose turnover of taxable
services is fifty lakh rupees or less in the previous financial year.
- Representations have been received, in respect of the specified eight
services, requesting clarification on determination of point of taxation in
respect of invoices issued on or before 31st March 2012 where the payment
has not been received before 1st April 2012.
- The issue has been examined. For invoices issued on or before 31st March
2012, the point of taxation shall continue to be governed by the Rule 7 as
it stands till the said date. Thus in respect of invoices issued on or
before 31st March 2012 the point of taxation shall be the date of payment.
- Trade Notice/Public Notice may be issued to the field formations
accordingly.
- Please acknowledge the receipt of this circular. Hindi version to
follow.
(Shobhit Jain)
OSD, TRU
Fax: 011-23092037
FNo 334/1/2012- TRU