9911796707
TMI BlogClarification on Point of Taxation Rules - regarding.X X X X Extracts X X X X X X X X Extracts X X X X ..... th July 2012. To Chief Commissioner of Customs and Central Excise (All) Chief Commissioner of Central Excise Service Tax (All) Director General of Service Tax Director General of Central Excise Intelligence Director General of Audit Commissioner of Customs and Central Excise (All) Commissioner of Central Excise and Service Tax (All) Commissioner of Service Tax (All) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Payment of Service Tax) Rules, 2007; and (c) Applicability of partial reverse charge provisions in respect of specified services. 2.1 The issues have been examined. The continuous supply of services was governed by rule 6 until 31.03.2012. The rule started with the wordings notwithstanding anything contained in rules 3, 4 Therefore, the point of taxation in respect of services pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule i.e. rule 3. This rule is, however, overridden by rule 4 when there is a change in effective rate of tax. The change in effective rate of tax has been defined in clause (ba) of rule 2 to include a change in the portion of value on which tax is payable. 3.2 To illustrate, the following would be changes in effective rate of tax:- (i) the change in the portion of total val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion Scheme for Payment of Service Tax) Rules, 2007 and now required to pay service tax @12% on 40% of the total amount charged, keeping the effective rate again at 4.8% (as only the manner of expression has been altered). (ii) works contracts which were outside the scope of taxation (and not merely exempted) but have become now taxable e.g. construction of residential complex comprising ..... X X X X Extracts X X X X X X X X Extracts X X X X
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