liability of service tax

[Harish mittal]

Before 1/7/12, service tax was liable on space given for advertisement. after 1/7/12, it has been exempt. If space sell for the month of june, but bill is raised by the company in july & payment is also received after july. Is company is liable to pay service tax?

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[YAGAY and SUN]

Please check the Point of Taxation Rules, 2011 in this regard.

 

[dhananjay beriya]

yes you are liable to pay service tax, because the service is provided before 1/7/12.

AI Summary

Tax liability for services depends on the date of provision under the Point of Taxation Rules, not invoice timing.
Liability for service tax on advertising space depends on when the service was provided; under the Point of Taxation Rules, 2011, services supplied before an exemption's effective date remain taxable even if invoiced or paid afterwards, so the provision date governs tax accounting and compliance.