Service tax payment on gta

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RAJNISH KUMAR PANDEY

RAJNISH KUMAR PANDEY (Querist)
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25 August 2013 Sir Let me know the Pay service tax on billing basis or payment basis with notification.

CA Suresh Jain

CA Suresh Jain (Expert)
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26 August 2013 Point of Service tax for the service provider is the date earliest of the the following :-

1. Date of the Invoice, or
2. Date of receipt of the payment, or
3. 30 days from the date on which service was provided.

Please refer rule 3 of Point of Taxation Rules, 2011

In case of GTA where RCM is applicable and payment of service tax is required to be made by the recipient of the GTA service, the rule 7 of Point of Taxation Rules, 2011 which reads as under shall be applicable :-

RULE 7. Determination of point of taxation in case of specified services or persons.--
Notwithstanding anything contained in these rules, the point of taxation in respect of the persons required to pay tax as recipients of service under the rules made in this regard in respect of services notified under sub-section (2) of section 68 of the Act, shall be the date on which payment is made :

Provided that, where the payment is not made within a period of six months of the date of invoice, the point of taxation shall be determined as if this rule does not exist:

Provided further that in case of “associated enterprises”, where the person providing the service is located outside India, that point of taxation shall be the date of debit in the books of account of the person receiving the service or date of making the payment whichever is earlier.

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