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Service tax

Anupama (No) (52 Points)

14 February 2012

what is point of taxation rules 2011???

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5 Replies

CA PARTH SHAH (In Practice) (1951 Points)
Replied 14 February 2012

Hello anupama, Point of taxation rules 2011 are the rule introduced in service tax from april 2011 to bring amendment in point of taxing the services provided by service provider I.e. With its introduction there are also amendment in CCR rules 2004 and STR rules 1994

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CA Ganesh Karthik (Chartered Accountant) (368 Points)
Replied 14 February 2012

Point of Taxation rules provide the point of time when a service is liable to be taxed. Earlier, the service tax was only on a receipt basis. After the introduction of Point of Taxation Rules, its now no longer on a receipt basis.

In siple words, generally, service tax shall become payable at the time of occurance of earliest of

1. Date of Completion of service

2. Date of receipt of money

3. Date of raising of invoice.

Further to the above, point of taxation rules contain the rules explaining the point of tax in case of continuous supply of service, change in rate of services, introduction of new services, in case of service provided by specific persons and in case of intellectual property service.