With respect to your query, As per service tax rules, Service Tax will be payable on accrual basis /completion of service or receipt basis, whichever earlier.
In your query, since you are receiving service before the bill and further it is not continuous basis, hence as per your example, service tax becomes payable in the month of April itself.
With respect to your query, As per service tax rules, Service Tax will be payable on accrual basis /completion of service or receipt basis, whichever earlier.
In your query, since you are receiving service before the bill and further it is not continuous basis, hence as per your example, service tax becomes payable in the month of April itself.
09 April 2013
My opinion is different.....as per service tax rules under reverse charge mechanism you have to pay service tax in the next quarter or month due date w.e applicable to you in which you had paid for the bill if it within 6 month of bill date....otherwise normal situation due date is applicable to you
Kindly visit following Link http://www.indiantaxupdates.com/2013/01/25/service-tax-reverse-charge-mechanism-accounting-treatment/
09 April 2013
I agree with you, Neha.... Thanks for the update..... Will point out the relevant portion for the point of taxation as per your link;
"Rule 7: - Determination of point of taxation in case of specified services or persons: -
Notwithstanding anything contained in these rules, the point of taxation in respect of the persons required to pay tax as recipients of service under the rules made in this regard in respect of services notified under sub-section (2) of section 68 of the Act, shall be the date on which payment is made:
Provided that, where the payment is not made within a period of six months of the date of invoice, the point of taxation shall be determined as if this rule does not exist:
As this is clear from the above Rule 7 of Point of Taxation is that in case of Reverse Charge the Point of Taxation is when the payment is made .i.e.service tax liability is arise when service recipient make payment to service provider."
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