Service tax on accrual basis?

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Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2011 whether service tax will be considered on accrual basis from 1st april 2011 onwards?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 March 2011 Yes ,by virtue of notification 18/2011-ST dated 01/03/2011.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 March 2011 meaning point of taxation rules?
thank You Sir.

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2011 meaning point of taxation rules?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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24 July 2025 Sure! Here’s a quick explanation:

**Service tax on accrual basis / Point of Taxation Rules:**

* Before **1st April 2011**, service tax was generally payable **on receipt of payment** (i.e., when you actually get the money).

* From **1st April 2011 onwards**, due to **Notification No. 18/2011-ST dated 01/03/2011**, service tax liability is triggered **on the earlier of these two events**:

* When **invoice is issued**, or
* When **payment is received**.

This means **service tax is payable on the accrual basis** — i.e., you pay tax as soon as you raise the invoice or receive payment, whichever is earlier.

This rule is part of the **Point of Taxation Rules, 2011**, which specify the timing of when service tax becomes due, to bring uniformity and clarity.

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