Amendments in Point of Taxation Rules (Effective from 11th July, 2014)

Hitherto the point of Taxation in respect of Reverse Charge where payment is not made within 6 months from the date of invoice was invoice date. A clarification has been issued whereby if the payment is not made within 3 month, the liability of Service Tax would be triggered on the 1st day immediately after completion of 3 months. Further it has been clarified that invoices issued prior to 1.10.2014 but their payment if not made within 6 month, the Point of Taxation would be the date of invoice.

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