Service tax on reverse mechanism
This query is : Resolved
divya barola
(Querist)
23 August 2013
Client imported taxable service on 24.07.2013 (Bill date) and paid to the service provider on 10.08.2013. In this case, service receiver will be liable to pay service tax on reverse charge mechanism.
Invoice value is $5000. For purpose of payment, which exchange rate will be taken? 24.07.2013 or 10.08.2013? Also, Service tax liability will arise on which date?
Invoice value is $5000. For purpose of payment, which exchange rate will be taken? 24.07.2013 or 10.08.2013? Also, Service tax liability will arise on which date?
Sumit Grover
(Expert)
23 August 2013
Rate of exchange--date of bill---Section 67A of Finance Act, 1994
Date of liability--- date of payment(since it is paid within 6 months from the date of invoice)---Rule 7 of Point of Taxation rules, 2011(as amended)
Date of liability--- date of payment(since it is paid within 6 months from the date of invoice)---Rule 7 of Point of Taxation rules, 2011(as amended)
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