Service tax on Receipt basis.

[love patel]

Respected all,

 

The Circular no. 154 /5 states that Services of Architact, CA, Cost accountant, CS, Consulting Enginer, Technical Consultent has been changed from Bill raised basis to Payment receipt basis.

 

Please have followup, if the same is extended for Surveyors.

 

The wording of Circular is as under:

Notification No.4/2012 - Service Tax dated the 17^th March 2012 has amended the Point of Taxation Rules 2011 w.e.f. 1^st 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 1^st 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.

 

THANKS AND REGARDS

Love Patel
HIG 91, Bharhut Nagar
Satna
485001
Mobile 9425172741

[S. Anoop Kumar]

Dear Mr. PC Shuklaji & Mr. Love Patel,

 

 

There is indeed some confusion in the notification.    But what I make out of it is that the service tax assessees who are g)Consulting Engineer, (p)Architect,, (q)Interior Decorator, (s)CA, (tCost accountant,), (u)CS, (za)Technical Consultant and whose turnover/billing is also more than Rs. 50.00 lakhs are also now eligible to pay the service tax on receipt of payment.  

 

Now for all other individuals or partnership firms - 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.

 

I am marking a copy of this message to few other surveyors who are chartered accountant and company secretary and others with legal background and they should be able share their valuable opinions.  I invite them to share their views. 

 

With best regards,

S. Anoop Kumar. 

 

 

----- Original Message -----

From: love patel

To: pcshukla

Cc: S. Anoop Kumar ; insurance-su...@googlegroups.com ; Insurance surveyors ; PS Ramnathan

Sent: Thursday, March 29, 2012 10:12 PM

Subject: Re: Service tax on Receipt basis.

Respected All,

 

We, Surveyors are under catagory ZY - Insurance Auxiliary. This exemption is not for us.

 sub-clauses (g)Consulting Enginer, (p)Architact,, (q)Interior Decorator, (s)CA, (tCost accountant,), (u)CS, (za)Technical Consultent  and  (zzzzm) of clause (105) of section 65 of the Finance Act, 1994. Rule 7

THANKS AND REGARDS

Love Patel
HIG 91, Bharhut Nagar
Satna
485001
Mobile 9425172741

On Thu, Mar 29, 2012 at 1:29 PM, pcshukla <pcsh...@sify.com> wrote:

Dear Mr.Patel,   As I understand it is applicable to all service provider( including surveyors) prop or partnership firm having receipt of payment of taxable services upto 50 lacs in the current FY ( 2011-12). This is applicable from 1.4.2012         Regards, P.C. Shukla| Surveyors & Loss Adjusters|Surveyors India | 117/H-1/125| Pandu Nagar| Kanpur| Uttar Pradesh - 208005| INDIA | Tel: +91-512-2216416 | Tel/Fax: +91-512-2231409| Mobile: +91 9415044156     -------Original Message-------

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Thanks & regards
 
*Love Patel*
(Surveyor)
HIG 91, Bharhut Nagar, Satna
Madhy pradesh, India 485001
Contact 9425172741

[B D Mohta]

I am of the view that Insurance auxiliary services is not specified so the exemption is not available to  Service Tax enrolled  Insurance surveyors and all are bound to pay service tax on accrual basis.

B. D. Mohta

Bangalore

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B. D. Mohta,
301-A, Brooklyn Apartments,
15-A, Rear Basement Room,
63, Banaswadi Road,
Bangalore-560033

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