APPLICABILITY OF REVERSE CHARGE MACHANISM, Service Tax

[MOHAMED RAFIQ]

IS THE REVERSE CHARGE MACHANISM APPLICABLE ON SERVICE PROVIDED BEFORE 01/07/2012 BUT BILL RAISED AND PAYMENT MADE AFTER 30/06/2012?

Posts / Replies

[JAMES PG]

Please refer to the clarification given in the Education Guide of Service Tax published by CBEC in this regard:

 

10.1.7 Is the reverse charge applicable on services provided and complete before 1.7.2012 though payments were made after 1.7.2012? For any service whose point of taxation has been determined and whole liability affixed before 1.7.2012 the new provisions will not apply. Merely because payments are being made after 1.7.2012 will not add any additional liability on the service receiver in respect of such services.

[Pradeep Khatri]

For any service whose point of taxation has been determined and whole liability affixed before 1.7.2012 the new provisions will not apply. Merely because payments are being made after 1.7.2012 will not add any additional liability on the service receiver in respect of such services.