Applicability of kkc

KKC will not applicable

But as per rule point of taxation for RCM is the date of payment.

Point of taxation is determined on the basis of earlier of following events (Rule 3) :-

a)       The time when the invoice for the service provided or to be provided is issued OR

b)       Where the person providing the service, receives a payment

This rule is not applicable for Reverse Charge Mechanism instead Rule 7 is applicable.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) NOTIFICATION No. 21/2016-Service Tax, New Delhi, the 30th March, 2016 G.S.R.---

(E).- In exercise of the powers conferred by clause (a) and clause (hhh) of subsection (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Point of Taxation Rules, 2011, namely :—

1. These rules may be called the Point of Taxation (Second Amendment) Rules, 2016.

2. In the Point of Taxation Rules, 2011, in rule 7, after second proviso, the following proviso shall be inserted, namely,– “Provided also that where there is change in the liability or extent of liability of a person required to pay tax as recipient of service notified under sub-section (2) of section 68 of the Act, in case service has been provided and the invoice issued before the date of such change, but payment has not been made as on such date, the point of taxation shall be the date of issuance of invoice.”.