Now it is clear to all the new service tax rate 12.36% is applicable from 01.04.2012. But generally there is perception in mind of people that where service has been provided before 31.03.2012 , 10.30 % service tax rate to be charged and where service has been provided after 01.04.2012, Service tax rate must be charged 12.36 % .But this is not the Fact .New Rates applicability is Governed by Point of Taxation rules (rule-4) .CA. Vikas Khandelwal has decoded the related rules in simple and tabulated manner for us .


(Analysis of Rule 4 of the Point of Taxation Rules, 2011)

With effect from 01.04.2012, Rate of service tax has been increased from 10.3% to 12.36%.Therefore, professionals and assesses must know where the old rate of Service Tax can be applied. Moreover, professionals should be aware of steps to be taken for availing the benefit of old rate of service tax as per the relevant provisions.

For example: if services have been provided prior to 31.03.2012, issuing of invoice prior to 31.03.2012 shall ensure applicability of old rate of Service Tax.This write-up deals with the provisions relating to rate of tax where there is change in effective rate of Service Tax.

Further write-up on change in effective rate of service tax as applicable w .e. f. 01.04.2012 is also given here under and link to download given at the end .


1.1 Step 1: Identify following three events: 
  • (i) Date on which taxable services have been provided; 
  • (ii) Date of issue of invoice; 
  • (iii) Date of receipt of payment 

Meaning of Date of Receipt of Payment and Date on which Taxable services has been provided 

(A) Date of receipt of payment: In present context, as per Rule 2A of Point of Taxation Rules, 2012 read with proviso thereof, date of payment shall be as under:

  • (i) If payment is received in cash: The date when the same is recorded in books of accounts or the date when deposited in bank account (if deposited), whichever is earlier.Thus, if payment is received by cash and same is recorded prior to 31.03.2012, date of payment shall be considered to be prior to 31.03.2012 (i.e. on such date when it is recorded in books of accounts).
  • (ii) If Payment is received by an instrument which is credited to a bank (e.g. cheque): In such case, if payment is recorded in books of accounts prior to 31.03.2012 and payment is credited in bank after 31.03.2012, in such case, date on which payment is recorded in books of accounts shall be considered as “date of payment” if Payment is credited in bank by 05.04.2012 (4 working days are allowed from the date of change of rate of tax, 01.04.2012 is Sunday).However, if payment is credited after 05.04.2012, date of credit in bank shall be considered as ‘date of payment’.
In simple words, if payment is recorded in books prior to 31.03.2012 and same is credited in bank by 05.04.2012, date of payment shall be considered to be prior to 31.03.2012(i.e. the date when same is recorded in books of accounts).

where date of credit in bank is after 05.04.2012 then date of credit in bank is to be treated as "Date of Payment " for Point of taxation rules.
Note:In few States Four working days end on 09/04/2012 as 01/04/12 is Sunday, 2/04/2012 is bank holiday for year end closing ,3 and 4 working,5/12/2012 holiday on account of Mahavir jayanti and 06/12/2012 is  holiday on Account of Good Friday 7 th is working but 8th is Sunday so Fourth working day falls on 09/04/2012

(B) Date when services have been provided: This has not been defined in Point of Taxation Rules, 2012. However, it should be interpreted to mean completion of provision of service with respect to which invoice is raised or would be raised.

1.2 Step 2: Determine rate of tax: 
  • (i) Applicability of 10.3 %: If two out of the three events given in step 1 herein above took place prior to 31.03.2012; 
  • (ii) Applicability of 12.36%: If two out of the three events given in step 1 here in above took place on or after 01.04.2012; 
In simple words, if any two events out of three mentioned in step takes place prior to 31.03.2012, old rate i.e. 10.3% shall be applicable. 


Download Point of Taxation Rules related to Service tax rate as explained above and new Service Tax rates wef 01.04.2012 2.1 As mentioned in Step 1 & 2 hereinabove, majority of three events shall decide the rate of tax. Now, date out of such majority dates shall be point of taxation. The same shall be determined as under:

Download Point of Taxation Rules related to Service tax rate as explained above and new Service Tax rates wef 01.04.2012
CA. Vikas Khandelwal, 
610, GD ITL Twin Towers, 
B-08, Netaji Subhash Place, 
Ring Road, Pitampura 
Ph: 011- 27356481, 
M- 91 9899740370 
E-mail: vikas.khandelwal@vkcca.com
Download Point of Taxation Rules related to Service tax rate as explained above and new Service Tax rates wef 01.04.2012





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SECURITIES (MNP) (TDS)2007-08 ` 01.07.12 01.09.2008 01.10.2012 06.07.2009 07.08.2012 1 PERCENT EXCISE ITEMS LIST 1 sep 1% excise 10 year nsc 10(10C) 1000 court cases judgements supplied to ITO 1000 rupee note 11-2008 11-2010 130 items 14.08.2008 15 august 150 Rs coin 15g 15h 18-12-2009 192(1A) 192A 194 I 194A 194c from 01.10.2009 194H 194j 194LC 1981-2007 2% cst 2% excise 2004 2008 2008-09 FY 2010 206AA 234A 234B 234C 234c interest calculator 234E 23AC 23ACA 23B 24C 24q annexure II 25 paisa coin 271(1)(c) 271B 271H 272B 27A 280 280 challan 281 282 283 29 AUGUST 29.04.2010. 29/08/2008 29/2008 service tax 2g meaning use 3 idiots 30 MARCH 31st March 32-2010 33 of 2009 35(2AA) 35(2AB) 3CD 3g meaning use 40(b) 43B 44 AB EXEMPTED INCOME 44AA 44AB AGRICULTURE 44AB new limit 44AB NON RESIDENT 44ad 46/2012 45/2012 49C 5 day week 5 years post office deposit 5/2011 50 paisa coin 54b 54EC 54ee 54f 54gb 5th paycommission punjab 6 % excise 6 crore advance limit 6/2005 69/2010 6th cpc 6TH PAY COMMISSION 70% of pan etds 7th Central Pay Commission 8 tips to save tax 80C 80ccc 80CCD 80cce 80CCF 80CCG 80d 80DDB 80EE 80G 80GG 80GGA 80GGB 80ggc 80tta 80U 85% of pan etds 86/2008 DATED 13-08-2008 87A rebate 89(1) 89(1) relief calculator 9.5 % rate for private epf 92E 95% of pan etds 98 dated 04/01/08 aadhaar aakash tablet aam admi aar Aayakar Sampark Kendra abatement abolished ACCOUNT PAYEE DRAFT Accounting ACCOUNTING CODE accounting code for services ACCOUNTING FOR GOVT GRANTS accounting standards ACES ADD IN Add-Ins additional relief in budget 2010 adjustment of advance FBT with advance Tax advance rullings advance salary ADVANCE TAX CALCULATOR advance tax challan ADVANCE TAX CUT OFF AMOUNT ADVANCE TAX DATES AFFIDAVIT AG Projects Technologies Ltd RT age 80 addition pension aibea wage revision aibea wage revision latest news aiboa aiboc aiboc wage revision AIG AIR airline ticket booking tds airlines all is well allowances allownces alphabet of inspiration alteration on check allowed alternate minimum tax AMENDED 3CD amendment in companies bill 2011 amendment in gratuity act 2010 amendment in registration service tax AMENDMENT IN SERVICE TAX ON RENT amendment to finance Bill 2010 AMNESTY SCHEME 2007 amt Anna Hazare anna hazzare bill vs govt lokpal bill appeal apply for new pan card against old pan card aqb arbitration arrears of salary arrears of sixth pay ARRERS TAX AS-12 ASBA assessee in default ASSESSMENT REOPENING ASSESSMENT YEAR 2008-09 REFUND atm atm 100 per day atm cash without card atm tips atm wrong debit audit cases itr filing audit limit enhanced Audit Questionaire AUDIT REPORT AUS VS IND.INDIA VS SL Automated teller machine AUTOMATION OF CENTRAL EXCISE AND SERVICE TAX ay 2010-11 bad debts Bank Bank account bank audit bank audit 2012 bank charges BANK SALARY bank strike 06/07/09 and 07/07/09 banking law amendment banknotes banks npa provisioning BARE ACT bare rules BASE RATE BY BANKS bcct BIMAL JAIN biometric pan card black and white form not 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capital asset capital formation huf Capital gain capital gain account scheme 1988 CAPITAL GAIN INDEX capital gain on repayment of loan capital gain on tenancy rights capital goods capital revenue CAPITAL SUBSIDY CAR LOAN RATE INCREASE carry forward of losses in late return cas cash flow statement CASH PAYMENT DIS ALLOWANCE CASH PAYMENTS EXCEEDING 20000 CASH SUBSIDY cbdt cbec CBI ARRESTED centeral sales tax rate CENTRAL PAY COMMISSION CENTRAL PROCESSING CENTER CENTRALISED PROCESSING OF RETURNS Cenvat CENVAT Credit Rules cgas 1988 challan challan 281 CHALLAN 289 challan correction challan Form 17 CHALLAN STATUS INQUIRY change change in cst rate change in excise duty rates CHANGE IN PAN ADDRESS CHANGE IN PAN DATA change in tds rates in budget changes CHANGES IN SERVICE TAX ACT changes in new itr forms CHANGES IN TDS CHARGES ON CASH PAYMENT OF CREDIT CARD BILL charitable organisation check name from PAN check tds deducted online Cheque cheque bounce cheque payment before due date cheque tender date /realisation date Cheque Truncation CHEQUE VALIDITY child care leave CHILD DEPENDENT PREMIUM CHILD MARRIED PREMIUM child plan childeren name children education allownces chip based atm card cibil cibil for companies CII 2007-08 CII 2008-09 CII 2010 cii 2012-13 CII2011-12 cin CIRCULAR 3/2010 DT 2.03.2010 CIRCULAR 8-2010 CIT v. 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