Liability of paymnet of service tax on gta service receipt

We are a proprietory concern registered as dealer. Hence, Liability to pay service tax on service provided by Goods Transportation Agency falls on us as per new service tax rules.

Now, I am wondering whether liability to pay service tax ariases on the date when we receipt service and bill for the service or when we make the payment to the transporter?

Seeking clarification. If possible, please notification number also.

Thanks,

Tushar Parmar.

Dear Mr. Tushar

Payment of tax in cases of new services.- Where a service, not being a service covered by rule 6,

is taxed for the first time, then, –

(a)      no tax shall be payable to the extent the invoice has been issued and the payment received against such invoice before such service became taxable;

(b)      no tax shall be payable if the payment has been received before the service becomes taxable and invoice has been issued within the period referred to in rule 4A of the Service Tax Rules, 1994.