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TMI BlogClarification on Point of Taxation RulesX X X X Extracts X X X X X X X X Extracts X X X X ..... BELGAUM-590001 C. NO. IV/16/26/2012 ST (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% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the matter further, if the invoice had been issued or payment received in respect of such services on or before 31. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 amount charged, or effectively @ 7.2% now). (ii) exemption granted to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly 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.) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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