Friends
What is the Point Of Taxation for payment of service tax under partial reverse charge mechanism. Is it date of booking of service provider's invoice in account books or date of payment of invoice of service provider in service receiver's books.
Regards,
Check Only Service Provide Book.
Not Receiver, Receiver Here Only For Paying Service Tax Liability
| Originally posted by : Dipjyoti Majumdar | ||
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Friends What is the Point Of Taxation for payment of service tax under partial reverse charge mechanism. Is it date of booking of service provider's invoice in account books or date of payment of invoice of service provider in service receiver's books. Regards, |
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For example, if the service provider has already raised the invoice, before 7th August 2012, for the recently added security service. the service recipient’s liability to make the payment is recognized on the date of invoice and hence the point of taxation shall be the date of such invoice. Hence, if invoice has been raised by the security agency before 7th August 2012, partial reverse charge will not apply, even if the payment is made by the service recipient after 7th August 2012. So, it is raising the invoice.
Sirs
Perhaps I have been unable to frame my question properly. Here is an example
P, a proprietorship firm sends a manpower supply bill dated 31/7/12 to DEF Ltd on 04/08/12.
The recipient company books the cost in its accounts on 07/08/12 but releases the cheque on say 01/ 09/12. So in this case, the service tax has to be paid to Govt. on 5/10/12 or 5/9/12.
Please clarify.
Regards,
Service Tax payment under reverse charge mechanism is on payment basis, thus, since the payment is made on Sep, 2012 the service liability needs to be paid to Govt by Oct, 2012.
Dear all,
My first question is that under reverse charge mechanism whether point of taxation rules 2011 is apply or rule 7 of point of taxation is apply?
lets have a practical example pls guide me on the same
1.A meeting of board of director is held on 27-07-2012 and payment of sitting fees is to director is made on 24-08-2012 whether company is liable to service tax under reverse charge or director personally?
2.the commision of FY 2011-12 is paid on 07-09-2012 to the director whether company is liable to service tax or not under reverse charge?
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