Clarification on Point of Taxation Rules

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....E NO. 09/2012 Subject: Clarification on Point of Taxation Rules - regarding. Consequent to the changes introduced at the time of Budget 2012 in the Point of Taxation Rules, 2011, together with revision of the service tax rate from 10% to 12% and the subsequent changes that have been made effective from 01.07.2012, the following clarifications have been desired: (a) Point of taxation and the ....

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.... on or before 31.03.2012 would remain unaffected by rule 4. 2.2 To clarify the matter further, if the invoice had been issued or payment received in respect of such services on or before 31.03.2012, the point of taxation would stand determined under rule 6 accordingly and shall not alter due to the subsequent changes in the Point of Taxation Rules, 2011 that became effective only from 1 4 2012.....

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.... contract other than original works (from @ 4.8% earlier to @ 12% on 60% of the total amount charged, or effectively @ 7.2% now). (ii) exemption granted to certain works contracts w.e.f. 1st July 2012 which were earlier taxable. (iii) taxability of certain works contracts which were hitherto exempted (iv) change in the manner of payment of tax from composition scheme under the Works Contr....

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....use by NGOs etc. (Rule 5 of the Point of Taxation Rules, 2011 shall apply to such services.) 3.4 Thus the point of taxation for services provided in respect of taxable works contracts in progress on 01.07.2012 would need to be determined under rule 4 of the Point of Taxation Rules unless there is no change in effective rate of tax. 4 It is further clarified that the provisions of partial reve....