Budget 2011 - Service Tax - Point of Taxation Rules, 2011

Budget 2011 - Service Tax - Point of Taxation Rules, 2011  

6.1 Point of Taxation Rules, 2011 have been framed vide notification 18/2011-ST and made effective from 01.04.2011. These rules determine the point in time when the services shall be deemed to be provided. The general rule will be that the time of provision of service will be the earliest of the following dates:  

i. Date on which service is provided or to be provided  

ii. Date of invoice  

iii. Date of payment  

6.2 Consequential changes have also been made in the Service Tax Rules, 1994 to alter the payment of service tax from receipt of payment to provision of service and also to permit adjustment of tax when service is not finally provided.