Wednesday, March 9, 2011

Service Tax-Notification No. 18/2011 in Budget 2011-12

Notification No. 18/2011- Service Tax
 New Delhi, the 1 st March, 2011
         

          G.S.R. (E).- In exercise of the powers conferred under clause (a) and clause (hhh) of subsection (2) of section 94 of the Finance Act, 1994, the Central Government hereby makes the following rules for the purpose of collection of service tax and determination of rate of service tax,  namely,-

1. Short title and commencement.-(1) These rules shall be called the Point of Taxation Rules, 2011. 
          (2) They shall come into force on the 1st day of April, 2011.

2. Definitions.- In these rules, unless the context otherwise requires,-

  • (a) “Act” means the Finance Act, 1994 (32 of 1994); 
  • (b) “associated enterprises” shall have the meaning assigned to it in section 92A of the Income  Tax Act, 1961 (43 of 1961);
  • (c) “continuous supply of service” means any service which is provided, or to be provided  continuously, under a contract, for a period exceeding three months, or where the Central  Government, by a notification in the Official Gazette, prescribes provision of a particular service to be a continuous supply of service, whether or not subject to any condition; 
  • (d) “invoice” means the invoice referred to in rule 4A of the Service Tax Rules, 1994 and shall  include any document as referred to in the said rule;
  • (e) “point of taxation” means the point in time when a service shall be deemed to have been  provided;
  • (f) “taxable service” means a service which is subjected to service tax, whether or not the same  is fully exempt by the Central Government under Section 93 of the Act; 
3. Determination of point of taxation.- For the purposes of these rules, unless otherwise stated, „point of taxation‟ shall be determined in the following manner, namely:-

(a) a provision of service shall be treated as having taken place at the time when service is provided or to be provided; and
(b) if, before the time specified in clause (a), the person providing the service issues an invoice  or receives a payment, the service shall, to the extent covered by the invoice or the payment  made thereof, be deemed to have been provided at the time the invoice was issued or the  payment was received, as the case may be, whichever is earlier. 

         Explanation.- 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.

            Explanation 2.- For the purposes of this rule, in respect of services taxable under section 66A  of the Act, the point of taxation under clause (b) shall be the date on which the invoice is received, or the payment is made, as the case may be, whichever is earlier.28

4. Determination of point of taxation in case of change of rate of tax.- Notwithstanding anything contained in rule 3, the point of taxation in cases where there is a change of rate of tax in respect of  a service, shall be determined in the following manner, namely:- 

 (a) in case a taxable service has been provided before the change of rate,-
  • (i) where the invoice for the same has been issued and the payment received after the  change of rate, 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 change in tax rate but the payment is received after the change of rate, the point of taxation shall be the date of issuing of  invoice; or
  • (iii) where the payment is also received before the change of rate, but the invoice for the same has been issued after the change of rate, the point of taxation shall be the date  of payment;
 (b) in case a taxable service has been provided after the change of rate,-
  • (i) where the payment for the invoice is also made after the change in tax rate but the  invoice has been issued prior to the change of tax rate, the point of taxation shall be the date of payment; or
  • (ii) where the invoice has been issued and the payment for the invoice received before the change of tax rate, 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 change of rate but the payment has been received before the change of rate, the point of taxation shall be date of  issuing of invoice.

5. Payment of tax in cases of new services.- Where a service, not being a service covered by rule 6, is taxed for the first time, then, – 

  • (a) no tax shall be payable to the extent the invoice has been issued and the payment received  against such invoice before such service became taxable; 
  • (b) no tax shall be payable if the payment has been received before the service becomes taxable  and invoice has been issued within the period referred to in rule 4A of the Service Tax Rules, 1994.
6. Determination of point of taxation in case of continuous supply of service.- (1) In case of  continuous supply of service, the whole or part of which is determined or payable periodically or from  time to time, shall be treated as separately provided at the date on which the payment is liable to be  made by the service receiver, if such date is specified in the contract. 

          (2) If, before the time specified in sub-rule (1), the person providing the service issues an invoice  or receives a payment, the service shall, to the extent covered by the invoice or the payment made 29 thereof, be deemed to have been provided at the time the invoice was issued or the payment was  received, as the case may be, whichever is earlier. 

          Explanation.- 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. 
 
             Explanation 2.- For the purposes of this rule, in respect of services taxable under section 66A  of the Act, the point of taxation under sub-rule (2) shall be the date on which the invoice is  received, or the payment is made, as the case may be, whichever is earlier.

7. Determination of point of taxation in case of associated enterprises.- The point of taxation in  respect of associated enterprises shall be the date on which the payment has been made, or invoice  under rule 4A of the Service Tax Rules, 1994 has been issued, or the date of debit or credit in books  of accounts of the person liable to pay service tax, whichever is earlier.

8. Determination of point of taxation in case of copyrights, etc. .- In respect of royalties and payments pertaining to copyrights, trademarks, designs or patents, where the whole amount of the  consideration for the provision of service is not ascertainable at the time when service was performed,  and subsequently the use or the benefit of these services by a person other than the provider gives rise  to any payment of consideration, the service shall be treated as having been provided each time when  a payment in respect of such use or the benefit is received by the provider in respect thereof, or an  invoice is issued by the provider, whichever is earlier.

9. Savings.- Nothing contained in these rules shall be applicable in case of invoices issued prior to the  date from which these rules become effective. 

F.No. 334/3/2011-TRU

-sd-
(SAMAR NANDA)
Under Secretary to the government of India

Intense Debate Comments

Labels

.csi file (5) "Y" Cancellation Statement (5) (TRPS) (2) 1% TCS on Cash Sale (1) 10(10D) (1) 10E form (1) 119(1) (1) 13 (1) 15G (8) 15H (8) 16A FROM FVU (25) 16A from TXT (3) 192 (1) 194 IA (1) 194A (1) 194C (4) 194H (1) 194I (1) 194J (2) 194LA (1) 194LC (1) 20% TDS (5) 2011 (1) 234A (1) 234E (2) 24Q4 (4) 26AS (21) 26Q4 (1) 27A form from FVU (5) 3CB (2) 3CD (1) 44AB (2) 44AD (1) 44AF (1) 49C (1) 7th pay commission (1) 80-IA (1) 80C (4) 80CCC (2) 80CCD (2) 80CCF (8) 80CCG (4) 80D (1) 80E (1) 80G (6) 80GG (2) 80QQB (1) 80TTA (2) 80U (1) 87A (1) 89(1) Relief (13) aadhaar (7) Aadhaar Form (3) Aadhaar Software (3) Accounting Standards (1) Accounts (1) add new challan (1) Advance Tax (29) Advance Tax Calculator (15) Age Calculator (3) AIR Codes (3) AMT (1) Application Form (2) APY (1) AS (1) ASBA (2) ATM Reconciliation (1) Authentication Code (1) B.Ed in Haryana (8) B.Ed Rohtak (2) Bank Charges (7) Banking Rates (19) Banks (17) Batch File (1) Belated Income Tax Return (4) Bills of Exchange (1) BOOKLET (1) Bootable USB (1) Broad Band (6) BSNL Forms (3) BSNL Free (4) BSNL Plan (4) BSNL usage (3) BSR Code (2) Budget (12) Budget 2012-13 (10) Budget 2013-14 (4) Budget 2014-15 (9) Budget 2016-17 (2) Bulk Pan Verification (1) Calculators (30) Calendar (3) Capital Gain (3) Central Excise (52) Challan Correction (4) Challan 280 (9) Challan 281 (8) Challan Status Query (1) Change of Deductor Category (1) Changes w.e.f. 01.06.2015 (1) Cheques (1) Children Education Allowance (1) Circulars (10) Cloud Printing (1) Clubbing of Income (1) Codes (7) Company (1) Complaint Form (1) Composition Scheme (1) Computer Repair (2) Consolidated File (9) Convert .docx to .doc (1) convert .rpt to .xls (1) Convert .xlsx to .xls (1) Corporate Salary Package (2) CPC (1) CPC Call Center (2) CPT (5) CTS-2010 (3) currency of 500 and 1000 (3) Customs (73) CWE (2) D.A. (6) Debit Card Scheme (1) Declared Goods (2) deduction from salary (3) Deductions (10) Default Status (8) Defaulter (3) Defective Return (1) Depreciation (3) Digital Signature (4) Direct Tax Codes (4) Diwali (1) DND (1) Dos to USB (Printing) (4) Download Exchange currency Form of old 500 or 1000 (1) Drop Box (1) DSC (1) DTO (1) due date (14) Due Dates (68) Duplicate Currency (1) Duplicate form 16 (3) e-Aadhaar (1) e-Electricity Bill (3) e-Excise (4) e-filing (66) e-Filing FAQ's (1) e-GRAS (1) e-Land Line Phone Bill (1) e-Payments (15) e-Post (1) e-Tax (1) e-TDS (20) e-Tutorial (1) e-Verification of Income Tax Returns (2) Electronic Signature (1) Emails (1) Employees Provident Fund (3) English Tenses (1) Enrollent Form (1) EPF (4) ETDS (14) Etds /Etcs (140) etds correction statement (86) etds\ (2) Excel (19) Excess TDS Deposit (3) Exchange of Currency (3) Excise Return (1) Excise Software (1) Exempted Income (10) Exempted Items from Vat (1) Exemption From Filling I-T Return (10) Extension in due Date (6) F.Y.2011-12 (1) FAQ (1) FAQ-Excise (1) Fast Calculation (3) Fat Calculator (1) FDR (4) Finance Bill (8) First Prize in Government Departments (1) Flag in TDS Retunr (1) Flood (1) Forget Password (11) FORM 15G (2) FORM 16 (1) Form 16 or Form 16A Directly from FVU files (22) Form 16A PDF Converter Utility (5) Form 16A PDF Generator (4) FORM 24G (1) Form 26AS (3) FORM 3CB (2) FORM 3CD (1) Form 49A (4) Form 49AA (2) Form B (1) form BB (1) forms (12) Free Calls from Mobile (2) Free Internet (1) Free of Cost Submission of TDS Returns (2) Free SMS (2) FVU 2.130 (1) FVU 2.131 (1) FVU 3.1 (1) FVU 3.3 (1) GAR7 Challan (1) Gas (6) Gift Tax (4) Google Drive (1) GPF (1) Gratuity Tax Exemption (2) Greeting (2) GST (22) GST Adjustment (1) GST Composition Scheme (1) GST Due Dates (1) GST Exemption (2) GST ITC Adjustment (1) GST Validation (1) GSTR-3B (1) H.U.F. (2) Handicapped/Blind Allowance (1) Happy Diwali (2) Happy New Year (2) Happy New Year 2014 (1) Haryana (1) Haryana Vat Forms (3) HDFC (1) Housing Property Loss (2) HRA (2) HSN CODES (1) HYUNDAI (1) IBPS (4) ICC World Cup 2011 (6) icicilombard (2) IFSC (1) IIT-JEE (1) Important Day's (1) Income Tax (29) Income Tax Calculator (30) income tax challans (1) Income Tax Forms (18) income Tax Return (1) Index Rate (1) Indian Currency Symbol (5) Indian Government (1) Infrastructure Bond (5) insurance (4) Interest on Loan for House Property u/s 24(b) (2) Interest on TDS (4) Interest Rates (10) intimation u/s 143(1) (1) Investment (1) IPCC (2) IPCE (1) IPL 2011 (1) IPL 2011 Schedule (2) ITR (72) ITR FORMS (3) ITR-4 (1) ITR-4S SUGAM (14) ITR-5 (1) ITR-7 (1) ITRV (4) Jain Temple (1) Jan Lokpal Bill (1) JOB (3) jobs (2) Justification Report (3) Know Name through Pan (5) Know Online EPF Balance (2) Know Your Age (1) Know Your Pan (3) Knowledge (7) KVP (2) KYC (4) Last Date (1) late filing of TDS return (1) Leave Travel Allowance (1) Legal Heir (1) LIC (3) Life Insurance Policy (1) Login at TRACES (1) Login Page for online upload TDS Return (4) Lokpal Bill (2) LPG (7) LTC (1) Mandatory (7) Manual (1) Master Card (1) mca (1) MEDICLAIM (1) Memorandum (2) MetLife (2) MICR Codes (6) Mobile (12) Mutual Funds (4) NEFT (1) Net Banking (3) new FORM 3CA (2) new form 3CB (2) new form 3CD (1) New Form ST3 (1) New Fvu (14) New Income Tax Slab (25) NEW ITR RPU (5) NEW ITR FORMS (7) New ITR-1 SAHAJ (20) NEW ORM 3CD (1) New Pension Scheme (3) New RPU (28) NEW RPU 2.4 (2) New RPU 2.8 (2) NEW RPU 4.4 (1) News (13) NIL TDS RETURN (2) Notification (46) NSDL (Form16A) (11) NSDL (RPU) (4) nsdl Conso. File (1) NSDL Form 16 (5) NSSF (2) OBC (1) OLTAS (1) Ombudsman (3) Online Facility (5) Online Income Tax Return (10) Online Pan (1) Online Rectification Request u/s 154 (11) Online submission of etds return (5) Outstanding Tax Demand (2) Pan (22) Pan % (1) Pan Error (1) PAN Ledger (3) Pan Verification (3) PAO (1) Passport (2) Password (2) Password Recovery (1) Pay Calculator (4) pay commission (1) Payroll (1) PDF Generator (4) PDF Software (2) Penalty (7) Perquisites (9) Petrol Rate (1) PF (2) PMJJBY (1) PMSBY (1) PNB (3) POS (1) Post Office Interest Calculators (13) PPF (9) Press Release (4) Quarter 2 TDS return (1) Railway (5) Railway Budget (3) rbi (2) RBI Circulars (5) Re-generation of Tax Receipt (1) Re-Registration of TAN (4) READY RECKONER (1) Rectification Manual (3) Rectification Order u/s 154 (2) Refund of Income Tax (13) Refund of TDS (3) Refund Reissue (2) Registration at TRACES (3) Registration e-TDS (2) Registration of TAN in e-filing site (1) Registration Procedure (2) Rejected eTDS/e-TCS (22) Renewal or Updation in Digital Signature for e-tds return (2) Resend Activation Link (1) Reset Password (1) Result (2) Revised ITR (4) Royalty (2) RPU (13) RPU 1.3 (1) RPU 2.6 (1) RPU 2.7 (2) RPU 2.9 (1) RPU 3.0 (1) RPU 3.1 (1) RPU 3.2 (1) RPU 3.3 (1) RPU 3.4 (1) RPU 3.5 (1) RPU 3.6 (1) RPU 3.7 (3) RPU 3.8 (1) RPU 3.9 (1) RPU 4 (1) RPU 4.1 (1) RPU 4.2 (1) RPU 4.3 (1) RTGS (1) RTI (1) RULES FOR ITR-1 (1) S.B.I. Software (4) Salary (18) Savings (7) SBI (37) Search GST Rates (5) Section (16) section 10 (2) Section 10(46) (2) section 197 (2) section 201 (1) Section 35CCD (1) Service Tax (111) Service Tax Codes (12) Shares (1) short payment (1) SMALL SAVING SCHEMES (11) Software (5) ST-3 (1) State Bank of Patiala (1) statement Status (1) Status (3) Status of KYC (1) STCG (1) STD Codes (1) Stock Valuation (1) Survey (1) T7Import (1) Tally (58) Tan (2) Tan Registration (32) Tariff (3) Tax Accounting Standards (1) TAX AUDIT (1) Tax Audit Limit (1) Tax Free Bonds (1) Tax Rate Flag (1) Tax Rates (3) Tax Return Preparer (1) TCS (1) TDS Calculator (3) Tds on Properties (1) TDS on Rent (2) TdS on Salary (5) TDs Rates (14) Toll Free Number (2) TRACES (11) Track (1) Trade Fair (1) Traffic Rules and Signals (3) TRAI (4) Transport Allowance (1) u/s 139(4) (3) u/s 143(1) (2) UIDAI (1) Unconsumed Challans (1) Union Budget (11) Upload (2) USB Bootable Creator Tool (1) value of Flag (2) Vat (4) Verify Pan Through PAN (1) View Tax Credit (12) Virtual Card (1) Visa (2) WEALTH TAX (1) WhatsApp (1) Windows (2) XBRL (1) Zero Uploading Fee (3)