Rule 5 - Payment of tax in cases of new services - Point of Taxation Rules, 2011

1 [ 5. Payment of tax in case of new services.- Where a service is taxed for the first time, then,- (a) no tax shall be payable to the extent the invoice has been issued and the payment received against such invoice before such service became taxable; (b) no tax shall be payable if the payment has been received before the service becomes taxable and invoice has been issued within fourteen days of the date when the service is taxed for the first time. 2 [ Explanation 1.- This rule shall apply mutatis mutandis in case of new levy on services. Explanation 2.- New levy or tax shall be payable on all the cases other than specified above. ] ************** Notes: 1. Substituted vide notification no. 4/2012 ST dated 17-3-2012, w.e.f. 1.4.2012 , before it was read as, 5. Payment of tax in cases of new services.- Where a service, not being a service covered by rule 6, is taxed for the first time, then, (a) no tax shall be payable to the extent the invoice has been issued and the payment received against such invoice before such service became taxable; (b) no tax shall be payable if the payment has been received before the service becomes taxable and invoice has been issued within the period referred to in rule 4A of the Service Tax Rules, 1994 .. 2. Inserted vide Not. 10/2016 - Dated 1-3-2016 , w.e.f. 1st day of March, 2016.