Service received before 01.07.2013 comes under rcm

This query is : Resolved 

23 July 2013 Is services recived before the issue of notification of 01.07.2012 regarding Reverse Charge Mechanism,liable to service tax in the hands of service receiver.

23 July 2013 No reverse charge, if service provided prior to 1-7-2012

1)In case of some services, reverse charge mechanism is applicable w.e.f. 1-7-2012 i.e. service tax is payable (partly or wholly) by service receiver..

2)In view of section 67A (which is effective from 28-5-2012), service tax will not be payable by service receiver under reverse charge mechanism, if service was provided prior to 1-7-2012, even if payment is received later.

3)This will be so even if invoice was issued after 1st July 2012. However, to avoid controversy, it is advisable to date invoice prior to 30-6-2012

[Note that Point of Taxation Rules cannot override provisions of section 67A].

Thanks & regards
Ganesh babu k

23 July 2013 Thanks Sir for ur Prompt reply


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