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If invoice recd in late - service tax

Queries 613 views 2 replies

Dear Sir(s),

Please clarify the following querry;

Service rendered in Nov'12 month, but provider is giving bill in Jan'13, what is the impact of ST liabilty to SR under RCM?

Replies (2)

Hi,

 

As per Rules 7 of Point of Taxation Rules

"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."

 

Hence the due date of paying service tax under RCM is the date of payment of such bill, if such payment is made within 6 months of date of invoice.

 

Hope it clarifies the issue.

 

Natesh K N

 

Point of taxation for reverse charge is the date of payement if the payment is made within 6 months. If the same is not paid within 6 months then POT will be date of bill  (if issued wothin stipulated time) or date of completion of service (if not issued within stipulated time)


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