Service tax - point of taxation - taxable event

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Ramesh (Querist)
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27 November 2014 Hi all,

Please advise which date is taxable event for service tax :
Completion of Service: 18/Aug/2014
Invoice Date: 13/Oct/2014
Payment received :24/Nov/2014

Thanking in anticipation

Ramesh

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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27 November 2014 As per Rule 3 of Point of Taxation Rule
POT of Taxation will be

1) Date of Invoice, if issued with time i.e. 30 days from the date of completion services
2) Date of Completion of services, if not issue within time
3) Date of Payment

Which ever is earliest

In your case POT will be Date of Invoice 13th October 2014

Ramesh

Ramesh (Querist)
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27 November 2014 Sir,
Thanks for reply.
However, need one clarification as rules mentioned and conclusion given seems to be contrary. In the given case, option 2 is applicable as invoice is not issued within 30 days from the the date of completion of services. hope you are getting me and will revert.

Rgds,
Ramesh

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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27 November 2014
You are correct Invoice is not issued within time limit, therefore point of taxation will be 18th August 2014

Ramesh

Ramesh (Querist)
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28 November 2014 Thanks a lot sir for your prompt response.
Rgds,
Ramesh

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