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Date of Payment for the KKC

Service Tax - Started By: - Sanjay Aggarwal - Dated:- 31-5-2016 Last Replied Date:- 4-6-2016 - Dear Sir,We have provided a taxable service to our client in 15,Apr 2016 and accordingly raised the invoice for such service in 10, May 2016. The customer have made the payment through cheque dated 31.05.2016 and subsiquently such cheque is cleared on 04.06.2016.In this case, what will be the date of payment and are we liable to pay KKC on such payment ? - Reply By deepak gulati - The Reply = Dear Sir, .....

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the change of rate,- (i) where the invoice for the same has been issued and the payment received after the 3[change in effective rate of tax], the point of taxation shall be date of payment or issuing of invoice, whichever is earlier; or (ii) where the invoice has also been issued prior to 2[change in effective rate of tax] but the payment is received after the 3[change in effective rate of tax], the point of taxation shall be the date of issuing of invoice; or (iii) where the payment is also re .....

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the date of payment; or (ii) where the invoice has been issued and the payment for the invoice received before the 1[change in effective rate of tax], the point of taxation shall be the date of receipt of payment or date of issuance of invoice, whichever is earlier; or (iii) where the invoice has also been raised after the 3[change in effective rate of tax], but the payment has been received before the 3[change in effective rate of tax],, the point of taxation shall be date of issuing of invoice .....

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e taxable; (b) no tax shall be payable if the payment has been received before the service becomes taxable and invoice has been issued within fourteen days of the date when the service is taxed for the first time. Explanation 1.- This rule shall apply mutatis mutandis in case of new levy on services. Explanation 2.- New levy or tax shall be payable on all the cases other than specified above. According to this rule if invoice in respect of provision of a new service is issued and payment against .....

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ce of the cheque is not at all relevant for levy of KKC. - Reply By Sanjay Aggarwal - The Reply = Sir,Will your answer be same if cheque clearance date is 5th June 2016 or thereafter ? - Reply By Ganeshan Kalyani - The Reply = Sir, KKC is a new levy and therefore Rule 5 is applicable. The reply of Sri Rajagopalan Sir is precise and to the point. And I agree with the his view that clearance of payment is not relevant for determining point of Taxation. Thanks. - Reply By Sanjay Aggarwal - The Repl .....

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king days from the date when there is change in effective rate of tax or a service is taxed for the first time; and, 3) the payment is made by way of an instrument which is credited to a bank account. - Reply By Sanjay Aggarwal - The Reply = Dear all, I need your expert comment, that whether Rule 2A will be applicable to determine the Date of Payment for the purpose of KKC or not ? - Reply By CS SANJAY MALHOTRA - The Reply = Dear Friends, Provision has been added to Section 67A of Finance Act, w .....

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ter 15.11.2015, whereas nothing specific has been stated for KKC. CBEC may come out with clarification / amend the POT rules,but going by present set of law, KKC is applicable for Invoices raised prior to 31.05.16 and payment not received. - Reply By Sanjay Aggarwal - The Reply = Thank you sir for your suggestion. That means, with the current set of law, Rule 5 will be applicable alongwith Rule 2A for the determination of POT of KKC. Hence, when payment is mady by cheque dated 31.05.2016 for the .....

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ctive rate of tax. Rule 5 reads: Payment of tax in case of new services. Rule 5 is applicable when it is a new service and it also deals with the date of payment as PoT. However in normal case of accrual system DoP will not at all come into picture as the PoT would have already been determined and tax is discharged. Let us assume M/s. ABC Pvt. Ltd. had raised his invoice in the month of Apr 2015 to M/s. XYZ along with Service Tax. As per PoT Rules the point of taxation is the point when the invo .....

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