Applicability of rule 7 of point of taxation of rules

This query is : Resolved

Gorav Kumar Goyal (Querist)
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15 April 2013 How rule 7 of Point of taxation rules in service tax is to be applied.

In Rule 7 , for reverse charge Point of taxation is date of payment.

We have made advance payment for works contract service to party.

Whether service tax as recipient will be paid on advance payment or after receiving bill.

Kindly reply.

CA Vikas Acharya

CA Vikas Acharya (Expert)
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15 April 2013 On advance payment
Because as per the rule 7 of POT Rules, the point of taxation for SR(Service Recipient) is date of payment except in the case where the payment is not made within 6 months from the date of invoice.

Gorav Kumar Goyal

Gorav Kumar Goyal (Querist)
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16 April 2013 And further we have to file Service Tax return as per payment.

i.e. if advance payment in october then in STR it has to be shown it october ?

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CA Vikas Acharya

CA Vikas Acharya (Expert)
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16 April 2013 of course.
because you have to deposit your service tax liability first and then has to be reflect in the return of that period.

Gorav Kumar Goyal

Gorav Kumar Goyal (Querist)
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16 April 2013 Okay thanks for opinion.