Rates of Service Tax or Rates of GST on services provided or to be provided shall have link to payment in certain situations says CBEC in Draft Rules – But, what is the relevant date?
By: – Surender Gupta
Service Tax
Dated:- 6-8-2010<\/p>\n
CBEC has issued a draft circular addressing various issues relating of determination of rate of taxes in the various circumstances [See Draft Rules with Explanatory Notes]
\nWhile analyzing the draft circular, I got perplexed with the query, that what is the relevant date which in my view CBEC must address while issuing final rules otherwise it would lead more confusions and complexities.
\nWhat is relevant date?
\nSince, CBEC has tried to introduce clarity and certainty in the matter of levy and <\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n onsidered to be received on or after 1.72010, such service provider is liable to pay service tax. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ontrary terms have been used, which may lead to more confusion: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Rates of Service Tax or Rates of GST on services provided or to be provided shall have link to payment in certain situations says CBEC in Draft Rules – But, what is the relevant date?By: – Surender GuptaService TaxDated:- 6-8-2010 CBEC has issued a draft circular addressing various issues relating of determination of rate of … Continue reading “Rates of Service Tax or Rates of GST on services provided or to be provided shall have link to payment in certain situations says CBEC in Draft Rules – But, what is the relevant date?”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-430","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/430","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=430"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/430\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nTherefore, in my view, the relevant provisions for determining the date of payment may be clarified as under:
\n1
\nCash transaction
\nRelevant date shall be the date when cash is actually received by the service provider.
\n2
\nTransfer through negotiable instruments e.g. Cheque \/ DD etc.
\nRelevant date shall be the date when the instrument is tendered with the bank by the service provider for clearance provided the same is honored.
\nWhere the instrument is dishonored, it should be treated as non receipt.
\n3
\nElectronic transfer e.g. NEFT \/ RTGS \/ Credit Cards etc.
\nRelevant date shall be the date when the payment is received by the service provid<\/p>\n
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\nIn the opening para of Rule 5 and in the sub rules (a) to (c) the term or concept of the term “date of payment” has been used. Whereas in sub rule (d) of rule 5 the term “date of receipt of payment” has been used.
\nIn Rule 6 of the Draft Rules, the concept of “date of receipt of payment” is used.
\nIn rule 7 of the Draft Rules, again contrary terms have been used which again may lead to confusion.
\nIn Rule 7(a)(i) and (ii), the concept of “date of payment” has been used whereas in rule 7(a)(iii) the concept of “date of receipt of payment” has been used.
\nIn rule 8 of the Drafts Rules, the concept of “date of payment” has been used.
\nIn rule 9 of the Draft Rules, the concept of <\/p>\n
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