Taxation of government-provided services: service tax applies where payment is consideration; point of taxation is due or payment, whichever is earlier. Services by Government or a local authority to business entities are taxable where payment is made as consideration, subject to specified exemptions. The point of taxation is the earlier of the date any payment becomes due as per the invoice/bill/challan or the date of payment. Interest on deferred payments is includible in value. CENVAT Credit for one time assignment charges may be availed evenly over three years, while credit for periodic payments is available in the year paid; prescribed documents such as challans evidence credit entitlement.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxation of government-provided services: service tax applies where payment is consideration; point of taxation is due or payment, whichever is earlier.
Services by Government or a local authority to business entities are taxable where payment is made as consideration, subject to specified exemptions. The point of taxation is the earlier of the date any payment becomes due as per the invoice/bill/challan or the date of payment. Interest on deferred payments is includible in value. CENVAT Credit for one time assignment charges may be availed evenly over three years, while credit for periodic payments is available in the year paid; prescribed documents such as challans evidence credit entitlement.
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