Point of taxation

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Gautham (Querist)
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30 December 2013 In case of a registered service provider, if the service is provided and the invoice is raised within 30 days,is there a liability to pay the service tax if the amount due is outstanding and is not actually received by such provider??

Eg: Mr. A provides service to Mr. B on 24.12.2013 and raises invoice on 25.12.2013. Payment to the same is made only on 31.03.2013. When does the Service Tax Liability arise in case of Mr. A.

CA Vikas Acharya

CA Vikas Acharya (Expert)
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30 December 2013 yes liability arises at the point of raising invoice as per point of taxation rules.
doesn't matter payment even if received late.
even if the payment not received you can get the credit of tax paid in the next return after raising a credit note but you can escape your liability at your point of taxation

Gautham

Gautham (Querist)
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01 January 2014 In the last sentence do you mean to say you cannot escape your liability at point of taxation ryte???

CA Vikas Acharya

CA Vikas Acharya (Expert)
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02 January 2014 yes exactly..
pardon it was a typo

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