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Point of taxation for service receiver.

Mohan (Audit Assisstant & Accounts Manager) (489 Points)

31 January 2017

Respected members,
Please explain me the point of taxation for service tax receipient; whether receipient is suppose to book service tax at the time of advance payment or when bill for the service is received?

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4 Replies

Mohan (Audit Assisstant & Accounts Manager) (489 Points)
Replied 01 February 2017

Dear members, please reply to my query.

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Arpit verma (Indirect tax) (1372 Points)
Replied 03 February 2017

Point of Taxation in case of reverse charge – Date of Payment of invoice or 3 months from date of invoice - whichever is earlier.

Arpit verma (Indirect tax) (1372 Points)
Replied 03 February 2017

means if you are making payment of invoice within 3 month , the date of payment will be point of taxation. if pay after 3 months- Next day after 3 month will be POT.