Applicability of reverse charge mechanism

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10 July 2012 Is Service receiver liable to pay tax on the renting of vehicle services availed prior to 1st July, 2012, but the payment is not made to the party as yet?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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10 July 2012 If the invoice is of the date prior to 01st july then reverse charge is not applicable otherwise applicable.

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10 July 2012 from which notification does this come from?

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Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2012 from which notification does this come from

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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10 July 2012 Note No. 10.1.7 of guidance note issued by CBEC dated 20th june 2012.
For any service whose point of taxation has been determined and whole liability affixed before 1.7.2012 the new provisions will not apply. Merely because payments are being made after 1.7.2012 will not add any additional liability on the service receiver in respect of such services