Kindly clarify if the payment against the Bills/invoices under works contract is made during July,12 for the services received in June,12. In this case, whether we have to pay 50% service tax under reverse charge method? or we have to pay service tax as per old provisions.
Regards,
VINAY
Service Tax on Pre-July 2012 Works Contracts: Use Old Provisions Despite Payment in July 2012 A user inquired whether service tax on works contracts paid in July 2012 for services received in June 2012 should be calculated under the reverse charge method or the old provisions. One respondent clarified that if the point of taxation and liability were determined before July 1, 2012, the new provisions do not apply, even if payments occur after that date. Another respondent suggested adhering to the old provisions. A third respondent noted practical challenges in assessments if payments are delayed, advising that invoices should be raised within 30 days of service provision to avoid complications. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
