Change in abatement rates under reverse charge mechanism

Dixit Kothari (Article) (71 Points)

23 December 2015

For amount paid to manpower supplier after 1.4.15 for bills dated before 1.4.15, at what rate should rcm be charged 75% or 100%

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MOXESH DOSHI (INTERNAL AUDITOR) (57 Points)
Replied 23 December 2015

Accoring to Point of Taxation Rules, If the Provision of Service was completed on or before 1-4-15, then 75% rcm would be applicable.

and if the provision of service was completed after 1-4-15, then 100% rcm would be applicable.

Suppose for example, your

Date of provision Date of Invoice Date of Payment RCM

1-3-15 28-3-15 2-4-15 75%

4-4-15 28-3-15 2-4-15 100%

hope your doubt is clear now.

Dixit Kothari (Article) (71 Points)
Replied 23 December 2015

But as per POT for rcm date of payment is considered as POT..so abatement as on that day would be applicable??

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