Point of Taxation on import of Services, Service Tax

[N Balachandran]

Sir,

Under Reverse Charge Mechanism, the Service Receiver to discharge the Service tax liability when the Service import from outside India. I shall be thanfkul if you could clarify the point of Taxation on import of Services 

The Service tax payable only when the payment is made or when the bills/ invoices raised by the service providers are booked?.  Let us take example:  The invoice was raised by the Service provider in the month of April but the same was booked in the books of Service received in the month of May.  The payment was made in the month of July.

When the Service receiver has to make the Service tax payment to the dept?

Regards

 

N.Balachandran.

Posts / Replies

[Sanjeet Kumar]

Dear N Balachandran

For Point of taxation in case of reverse charge please refer rule 7 of POT 2012 (Amended).

In short, in your example the due date for payment of tax is 5th/6th August in case of company or 5th/6th of oct in case of P/P/F

 

[Krishan Gopal]

Rule 7 of point of taxation under RCM, service tax payment liability on payment basis but payment is not made with in six month from date of invoice than liabilty will be considered from the date of invoice.

in case of assoicate enterprises, payment or credited, whichever will be earlier

K Gopal

 

[N Balachandran]

Thanks Mr. Sanjeet and Mr. Gopal for your immediate response. 

Regards

N.Balachandran