Trade Notice No.05/2012 – Service Tax/SH

              Dated Shillong, 25th April, 2012.


                 Subject:- Clarification on Point of Taxation Rules- regarding.

Attention of the members of Trade, Industry and all others concerned are hereby invited to the Board’s Circular No.154/5/2012-ST issued under F.No.334/1/2012-TRU dated 28th March 2012 on the above subject. 

1.                              Notification No.4/2012- Service Tax dated the 17th March 2012 has amended the Points 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 service referred to in sub-clauses (g), (p),(q), (s), (t), (u), (za) and (zzzm) 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 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.                                Hindi version will follow.


Board Circular No.154/5/2012-ST

Issued vide F.No.334/1/2012-TRU dated 28th March, 2012 


Disclaimer: Though care has been taken to reproduce the text in its original form, in case of any inadvertent mistake, the above mentioned circular may be referred to. 




 (Anil Kumar Gupta)