Point of taxation

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

Provided that the invoice has been issued within 30 (45 in case of banking services) days from the completion of provision of Service.If invoice has not being issued with in stipulated time then POT shall be the date of completion of provision of Service

If Invoice is issued prior to completion of service POT shall be the date of INVOICE.

In this case,pot shall be invoice date.

There are 2 way for Pot in such case:- (in case of changeof rate)
1. service completed b4 change in rate thn invovice or payment date whichever is earlier
2. service not completed whn rate changes thn invoice or payment date whichever is later.
in above case if payment is also received before change in rate than invoice or pyt date whichever is later is considered