A detailed d

2. Point of Taxation Rules2011 – (Service Tax) Analysis of (For internal circulation only)

4. Point of taxation Rules

5. Normal Case

6. Change in effective rate

7. New Service

8. Continuous Supply

9. Specified Services

10. Intellectual Property Services

11. Transitional Provisions

12. CenvatCredit Rules

15. Move from Cash basis of taxation to an Accrual based system

16. Point of taxation is defined as the “Point in time when a service shall be ‘deemed to have been provided’[Rule 2(e)].

17. The point of taxation (POT) determines Rate of service tax and Due date of payment of service tax.

20. Point of Taxation [Rule 3] – Normal Case Scenarios: For the purposes of this rule, wherever any advance, by whatever name known, is received by the service provider towards the provision of taxable service, the point of taxation shall be the date of receipt of each such advance

22. Change in effective rate of tax may arise out of the following:

23. Any amendment, insertion or deletion of a clause in the Act

24. Any amendment, insertion or deletion of a clause in any Rules governing provisions of ST

25. Issue or withdrawal of a Notification or amendment in any clause thereof

26. Issue or withdrawal of a Circular or amendment in any clause thereof

27. Change in effective Rate of Tax includes:

28. Change in portion of Value on which Tax is payable in terms of Notification issued under the provisions of Finance Act, 1994 or Rules made there under.

30. Introduction of New Service [Rule 5] Scenarios:

32. Commercial or Industrial Construction

33. Construction of Residential Complex

34. Internet Telecommunication

37. Specified Services [Rule 7]

39. Examples include Copy rights, trade marks, design and patents etc.

40. Point of Taxation is deemed to be when earlier of the following events occur:

41. Payment is received by the provider, or

43. Provision of services completed, or

44. Invoices issued Prior to 1.4.2011

47. Credit available on receipt of invoice provided

48. In case of Non-payment within 3 months of date of invoice Credit availed needs to be reversed

49. Such reversed credit can be re-availed on payment of value of service and service tax

50. For reverse charge , Credit available on payment of Value of service and service tax within 6 months of invoice.

51. For invoices issued prior to 1/4/2011 , Credit is available on payment.

52. Supplementary invoice by service provider can be used as document for availing credit

55. Within 14 days of “completion of service”

56. For continuous supply – within 14 days of completion of each specified event

57. In case of invoice renegotiated due to deficiency of service or change in terms of contract Service provider can refund the amount to Service receiver with service tax or issue a Credit Note to service receiver except Bad debts/ Discounts/ Reduction in Charges.

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