Rule 4 - Determination of point of taxation in case of change of rate of tax - Point of Taxation Rules, 2011

4. Determination of point of taxation in case of change of rate of tax.- Notwithstanding anything contained in rule 3, the point of taxation in cases where there is a 1 [change in effective rate of tax] in respect of a service, shall be determined in the following manner, namely:- (a) in case a taxable service has been provided before the change of rate,- (i) where the invoice for the same has been issued and the payment received after the 3 [change in effective rate of tax], the point of taxation shall be date of payment or issuing of invoice, whichever is earlier; or (ii) where the invoice has also been issued prior to 2 [change in effective rate of tax] but the payment is received after the 3 [change in effective rate of tax], the point of taxation shall be the date of issuing of invoice; or (iii) where the payment is also received before the 3 [change in effective rate of tax], but the invoice for the same has been issued after the 3 [change in effective rate of tax], the point of taxation shall be the date of payment; (b) in case a taxable service has been provided after the 3 [change in effective rate of tax],- (i) where the payment for the invoice is also made after the 1 [change in effective rate of tax] but the invoice has been issued prior to the 1 [change in effective rate of tax], the point of taxation shall be the date of payment; or (ii) where the invoice has been issued and the payment for the invoice received before the 1 [change in effective rate of tax], the point of taxation shall be the date of receipt of payment or date of issuance of invoice, whichever is earlier; or (iii) where the invoice has also been raised after the 3 [change in effective rate of tax], but the payment has been received before the 3 [change in effective rate of tax],, the point of taxation shall be date of issuing of invoice. 4 [****] **************** Notes: 1. Substituted vide notification no. 25/2011 ST dated 31-3-2011 , before it was read as, change of rate of tax 2. Substituted vide notification no. 25/2011 ST dated 31-3-2011 , before it was read as, change in tax rate 3. Substituted vide notification no. 25/2011 ST dated 31-3-2011 , before it was read as, change of rate 4. Omitted vide notification no. 4/2012 ST dated 17-3-2012, w.e.f. 1.4.2012 , before it was read as, Explanation .- For the purposes of this rule, change in effective rate of tax shall include a change in the portion of value on which tax is payable in terms of a notification issued under the provisions of Finance Act, 1994 or rules made thereunder.