Service tax on provisional expenses

Sorry, my earlier answer stands modified. Rule 7 of point of taxation rules, 2011 is applicable.

Dear Vaibhav,

As per Rule 7 of Point of Taxation Rules, 2011, the point of taxtaion for service receiver is the date of payment of service. This implies that if in your case, even though the service has been provided in March 2014 but actual payment for the said service is made in April 2014, then tax liability shall arise in April only, which should be paid by 05.05.2014.

Therefore, irrespective of the date on which invoice has been issued to you or the date of completion of service, point of taxation for service receiver shall arise only upon the date of payment of service. If it's March, then tax due date is 31.03.2014 and if it's April, then 05.05.2014.

Accordingly, relevant period of return shall also be determined.

Tnx Vishal & Rashmi,

I have passed my RCM service tax liabilyt entry in expense booking (i.e. on accrual basis) through out the year. For  March month's provisional entries, i may prepare a statement and booked in April and paid in 5.5.14.

Is it right way??

thnx again for valueable inputs.