Point of taxation in case of partial reverse charge
This query is : Resolved
NIKHIL KUMAR
(Querist)
16 December 2015
Hi,
I am Nikhil, I just want to ask a query that what is the point of taxation in case of partial reverse charge. As per rule 7 of POT rules in case of partial reverse charge, the point of taxation for service receiver is date of payment if invoice but my seniors are of the view that it is date of booking of invoice or date of payment of invoice by service recepient whichever is earlier.Please clarify this issue asap.
I am Nikhil, I just want to ask a query that what is the point of taxation in case of partial reverse charge. As per rule 7 of POT rules in case of partial reverse charge, the point of taxation for service receiver is date of payment if invoice but my seniors are of the view that it is date of booking of invoice or date of payment of invoice by service recepient whichever is earlier.Please clarify this issue asap.
Neljo Davis ACA
(Expert)
18 December 2015
The point of taxation for reverse charge mechanism shall be the date on which payment is made.
Where payments are not made within three months from the date of invoice, Point of taxation shall be the date immediately following three months from the date of invoice.
In the case of "associated enterprises", where the person providing the service is located outside India, that point of taxation shall be the date of debit in the books of account of the person receiving the service or date of making the payment whichever is earlier.
Where payments are not made within three months from the date of invoice, Point of taxation shall be the date immediately following three months from the date of invoice.
In the case of "associated enterprises", where the person providing the service is located outside India, that point of taxation shall be the date of debit in the books of account of the person receiving the service or date of making the payment whichever is earlier.
NIKHIL KUMAR
(Querist)
21 December 2015
Please clarify whether it has anything to do with date of booking of Invoice ?
Neljo Davis ACA
(Expert)
22 December 2015
Date of booking of invoice is relevant only in the case of "Associated Enterprises"
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