Procedural changes in payment of Service Tax

Notification 3/2012 and
Notification 4/2012 both dated
17.03.2012 has brought certain
procedural changes in payment
of service tax by amending Service
Tax Rules, 1994 and Point of
Taxation Rules, 2012 respectively.
These amendments are
summarised as under:
1.0 Liability on receipt basis if
turnover is less than 50 lacs for
assesses – However, special
benefit to professionals
withdrawn.
2.0 Period for issuance of invoice
extended from 14 days to 30 days
– impact in determining point of
taxation.
3.0 Definition of continuously
supply of service amended to
bring clarity.
4.0 Adjustment of service tax
without any monetary limit.
5.0 In case of export—no service
tax liability if payment received
within the time as extended by
RBI.
6.0 Clarification in turnover based
exemption – amendment in
Notification no. 6/2005 vide
Notification No. 5/2012.
7.0 Payment of service tax after
issuance of invoice if amount to
the extent of Rs.1000/- excess
received.