Service Tax - Point of Taxation Rules Amended
AS per Rule 7 of the Point of Taxation Rules, the point of taxation in respect of the persons required to pay tax as recipients of service under the rules made in this regard in respect of services notified under sub-section (2) of section 68 of the Act, shall be the date on which payment is made:
Now the Government has added a proviso to this rule:
"Provided also that where there is change in the liability or extent of liability of a person required to pay tax as recipient of service notified under sub-section (2) of section 68 of the Act, in case service has been provided and the invoice issued before the date of such change, but payment has not been made as on such date, the point of taxation shall be the date of issuance of invoice.".
A very fair and just provision. Maybe they are serious about ‘ease of doing business'.
Notification , Dated March 30, 2016