what is the point of taxation

[Swapneswar muduli]

Dear Sir,

As we are manufacturer we have to pay the service tax under RCM.

My question is in case of GTA.manpower supplier and work contract they raised invoices prior to 15 Nov and we are availed the service prior to 15 Nov. But in case of labor contractor it is continuous service for the period of one month and he raised bill at the month end.

but we accounted this invoices after 15 Nov and payment made also after 15 Nov in that case which service tax will be applicable 14% or 14.50 % under Reverse charge mechanism.

Regards

Swapneswar Muduli

AI Summary

Service Tax Rate for Pre-November 15, 2015 Services Paid After: 14.5% Plus 0.5% Swachh Bharat Cess per Rule 7. A manufacturer inquires about the applicable service tax rate under the Reverse Charge Mechanism (RCM) for services received before November 15, 2015, but paid after this date. The query involves services like goods transport, manpower supply, and labor contracts. Two responses clarify that, according to Rule 7 of the Point of Taxation Rules, 2011, the tax rate applicable is determined by the payment date. Since the payment occurs after November 15, 2015, a 14.5% service tax rate applies. Additionally, the Swachh Bharat Cess (SBC) of 0.5% is applicable on the taxable service value.