06 January 2014
Point of taxation Rules clarify at what point of time the service provider / receiver is liable for paying the Service Tax. As per the current Rules in force, the Service Provider is liable to pay service tax when the following events occur: (a)Date of Rendering of Service (b)Date of issuing Invoice. The invoice should be issued within 30 days of completion of service or else the date of rendering service will apply. (c) Receipt of money, whether in settlement of the bill or as advance WHICHEVER IS THE EARLIEST.
In case of Reverse Charges, the service recipient becomes liable to pay the service tax on making payment to the Service Provider.
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