Circular No.154/5/ 2012 – ST
FNo 334/1/2012- TRU
Government of
India
Ministry of
Finance
Department of
Revenue
Central Board of
Excise and Customs
Tax Research Unit
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.
1.
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.
2.
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.
3.
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.
4.
Trade Notice/Public Notice may be issued
to the field formations accordingly.
5.
Please acknowledge the receipt of this
circular. Hindi
version to follow.
(Shobhit Jain)
OSD, TRU
Fax: 011-23092037