Point of taxation-recverse charge
This query is : Resolved
23 July 2012
Hello,
Whether Point of Taxation Rules will be applicable for Service Receiver in under Reverse charge.
Case:
We are getting Works Contract done by Contractor.
We are paying advance to the contractor.
Whether we have to charge Service Tax on such advaces?
What is the status of service receiver?
How he will treat the same?
Whether we(Service Receiver) need to ensure his(Service Provider) compliance?
Where in Law it is told that- POT is applicable to Reverse Charge? (Service Receiver)
Please clarify.
Whether Point of Taxation Rules will be applicable for Service Receiver in under Reverse charge.
Case:
We are getting Works Contract done by Contractor.
We are paying advance to the contractor.
Whether we have to charge Service Tax on such advaces?
What is the status of service receiver?
How he will treat the same?
Whether we(Service Receiver) need to ensure his(Service Provider) compliance?
Where in Law it is told that- POT is applicable to Reverse Charge? (Service Receiver)
Please clarify.
Suresh Mittal
(Expert)
23 July 2012
Yes, Rule 7 of Point of Taxation would be applicable and as per the Rule in case when SR is the person liable to pay ST, the Point of Taxation shall be the date of payment. However in case payment is not made within six months of the date of invoice, POT will be as per Rule 3.
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