Ammendment in rule 5 of point of taxation rules 2011

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  1. Ronak Mota

    Ronak Mota New Member

    Dear Members,

    Recently, Rule 5 of Point of Taxation Rules 2011 has been ammended via Notifiaction No. 10/2016-Service Tax to insert some clarificatory explanations.

    Before this ammendment if Services were provided before New Levy this Rule was not applicable because section 67A provides rate of tax on date on which service is provided will be the rate of tax which is Nil, however the new explanation reads as "New levy or tax shall be payable on all the cases other than specified above". As there is no case in Rule 5 where service is completed before New Levy, so will service tax be payable as per Rule 5 if ONLY payment is not received? OR Section 67A will still prevail over Rule 5 (This is with reference to New Levy of Krishi Kalyan Cess applicable w.e.f 01-06-2016)
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