Clarification on Point of Taxation Rules

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....T (Tech.) Dated: 26.07.2012 SERVICE TAX TRADE NOTICE 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 clarifi....

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....oint of taxation in respect of services provided in terms of the said rule 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 change....

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.... (i) the change in the portion of total value liable to tax in respect of works 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 e....

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....xable e.g. construction of residential complex comprising of 2 to 12 residential units, construction of buildings meant for 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 ....