Go AD-FREE with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Reverse charge mechanism

589 views 2 replies

Kunal

Article

90 Points Joined February 2014

Reverse charge mechanism by Kunal on13 March 2014 hello sir, Whether reverse charge is applicable on advance payment made to advocate prior to 1-7-2012 but the bill is booked after 1-7-2012?? Thank you. You need to be the querist or approved CAclub expert to take part in this query . Reverse charge mechanism by Kunal on13 March 2014 hello sir, Whether reverse charge is applicable on advance payment made to advocate prior to 1-7-2012 but the bill is booked after 1-7-2012?? Thank you

Replies (2)

Vikas

1135 Points Joined January 2010

As per Point No.10.1.7, if the point of taxation of a service is determined to be prior to 1 July 2012, then in that case, there would not be any Service tax under reverse charge mechanism.

The date of invoice or payment shall be seen to determine the point of taxation in this case.

Since, the reverse charge mechanism has been introduced from 1 July 2012 on payments to advocates, therefore, if the point of taxation has been determined before 1 July 2012, no RCM shall apply in this case.