St payment & potr

As I understand, option to pay ST on receipt basis is available (for Individuals/Firms) if the turnover is <=50 lacs. If not covered under this category, then POT is date of invoice or receipt whichever earlier (if invoice raised within 30 days). Else, POT is date of completion of service of receipt, whichever earlier. Have I missed anything here?

u sae date of invoice or receipt of payment whichever is earlier

or completion of service or invoice receipt whichever is earlier

now lets say invoice date is 4th April 2016 and payment is received on 31st December 2016

Service completed on 31st March 2016

Now Here POT is 4th April Right

But as i am on cash basis i will pay service tax only after 31st December 2016 as that is receipt date 

that means my st payment date is not equal to POT date

Plz anyone reply i am getting confused

If the option to pay ST on receipt basis is availed, then POT would the date of receipt (irrespective of rule 3 of POTR)

Hi Hiren Parmar,

Don't be get confused. We are here to help you. 

Let me take your query in bit technical terms. 

The essence Point of taxation rules is to determine the leviability date and not the payment date. Therfore, once you decide what is the point of taxation then, you need to go to service tax rules wherein third proviso to rule 6(1) gives the option to pay tax on reciept basis. 

Therefore, if you are eligible for that option and opt for the same then your laibility get deferred to the date of actual reciept. 

On following the STR 1994 point of taxation rule doesn't get violated

Hope you got a nice solution to your query.

That means if Receipt is below Rs 50 lac no need to check out potr pay as and when u receive amt of tax u have charged