In case of Works contracts service when will service tax liability of service receipient will arise ie. at the time of payment or raising of invoice or whichever is earlier ?
6 Replies
SHIVANI MAHESHWARI
(CA)
(548 Points)
Replied 05 July 2013
can you tell me in which rule it is mentioned ?
Madhu Hegde
(article assist)
(62 Points)
Replied 05 July 2013
For your information, Point of taxation under reverse charge mechanism is date of payment to the service provider provided payment must happen within 6 months from the date of invoice otherwise point of taxation will be date of invoice. Invoice needs to be issued by the service provider within 30 days of completion of each event/service. If invoice is not issued within the specified time, point of taxation will be the date of completion of provision of service.
Provided that in case of “associated enterprises”, where the person providing the service is located outside India, the 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.
Hope you are clarrified...??
CA Momin Owais Ahmed
(Audit Manager)
(154 Points)
Replied 05 July 2013
Agree with Madhu,
Rule 7 of Point of Taxation Rule, 2011(Amended)
Madhu Hegde
(article assist)
(62 Points)
Replied 05 July 2013
It has mentioned in Rule(7) of the sec-68..
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