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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 ..... ms 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) Madam/Sir, Subject: Clarification on Point of Taxation Rules - r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect 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 provided in terms of the said rule on or before 31.03.2012 would remain unaffected by rule 4. 2.2 To clarify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 value liable to tax in respect of works contract other than original works (from @ 4.8% earlier to @ 12% on 60% of the total amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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