Reverse charge-service tax implication

As per rule 4(7) - POT will be the date of payment, provided payment is made within 6 months.However, if the payment is not made withing 6 months, the rule will not apply.

Accordingly the POT will be -

- time when the invoice is issued (if the invoice is not issued within the specified time lines under rule 4A, time when the provision of services is completed.
- If the payment is received before raising the invoice, then POT = date of receipt of payment. In case the in case of continuous supply of service where the provision of the whole or part of the service is determined periodically on the completion of an event in terms of a contract, which requires the receiver of service to make any payment to the service provider, POT = the date of completion of provision of service