TMI BlogBudget VII- Effect of POT Rules 2011 on change in Service Tax RateX X X X Extracts X X X X X X X X Extracts X X X X ..... Budget VII- Effect of POT Rules 2011 on change in Service Tax Rate - By: - CA Akash Phophalia - Service Tax - Dated:- 13-3-2015 - - BUDGET - VII (POT Rules) Effect of POT Rules, 2011 on change in rate of Service Tax. Although this effect is to be reckoned from the effective date as notified by the Central Government. Sr. No. Taxable Service Provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Issue of Invoice Receipt of Payment Point of Tax Rate Applicable 1. Before After After Earlier of date of payment/issue of invoice 14% 2. Before Before After ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Date of issue of invoice 12.36% 3. Before After Before Date of payment 12.36% 4. After Before After Date of Payment 14% 5. After ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Before Before Earlier of date of payment / Issue of Invoice 12.36% 6. After After Before Date of issue of Invoice 14% Note:- The proposed levy of Swachh Bharat Cess @ 2% is also in the nature of service tax as narrated in clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se 117 of the Finance Bill 2015 . Thus POT rules shall equally apply to it in the same manner as mentioned above. The words Before and After in the above table mean before/after the date to be notified. In case of Sr. No. 3 and Sr. No. 5 above, if the payment is not credited in the bank within 4 working days from the date when there is change in effective rate of tax, the new rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14% would apply. ( Rule 2A of POT Rules,2011 ) The rate of 12.36% is inclusive of Education Cess and SHE Cess. CA Akash Phophalia 9799569294 ca.akashphophalia@gmail.com Office No 3 Second Floor Amrit Kalash Residency Road Near Bombay Motor Circle Jodhpur - 342001 Rajasthan - Reply By Vinay Kunte as = Sir, My view is as under w.r.t. Point No. 6 of the Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble: At Point No. 6 of the table the Rate of Service Tax will have to the Date earlier of the Invoice Issued or the Payment received. As the Payment is received in form of an Advance, the Service Tax will have to be paid @ 12.36% before the budgetary changes take effect. Please correct me if I ma wrong which will enrich my knowledge as well. Dated: 14-3-2015 Reply By CA Akash Phophalia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as = Respected Vinay Ji Thanks for showing interest in my article. Kindly refer Rule 4 (b)(iii) of Point of Taxation Rules, 2011 . This rule guides point no 6. Humble regards Dated: 14-3-2015 - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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