Rcm-point of taxation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2016 If Invoice date 15-07-2015 , date of completion of service 31-03-2015 and Date of Payment 15-11-2015 than what will be the point of taxation under RCM ? And if payment made on 20-07-2015 in above case than what will be the POT?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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26 February 2016 Under the Point of Taxation Rules, RCM liability arises on payment of the expenses. In your case, the RCM arisees in the month of July. The date of completion of service applies to the service provider, not the service recipient. The liability of the service recipient starts on receiving the invoice for payment for services received and hence , the date of completion is immaterial from the point of view of the service recipient. therefore your liability arises either in July 2015 or November 2015 and not March 2015.

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Querist : Anonymous

Querist : Anonymous (Querist)

27 February 2016 If invoice date 01-4-2015 but received on 15-07-15 than any change in POT?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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28 February 2016 For the service provider the Point of taxation would shift from FY 2014 - 15 to FY 2015 - 16, but for the service recipient paying the tax, no difference except that the liability would arise in July 2015 since, the creditor has to be paid off within 180 days.

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2016 So here 3 month count from date of invoice not fromm date of receipt of Invoice?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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28 February 2016 No six months is available which will expire on 30 September 2015.

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