Point of Taxation on import of Services

[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.

AI Summary

Clarification Sought on Tax Timing for Imported Services Under Reverse Charge; Rule 7 of Point of Taxation 2012 Cited A discussion on the point of taxation for imported services under the Reverse Charge Mechanism was initiated, seeking clarification on when the service tax is payable. The query involved a scenario where an invoice was raised in April, booked in May, and paid in July. Responses referenced Rule 7 of the Point of Taxation 2012, indicating tax is due by 5th/6th August for companies or 5th/6th October for others. Additionally, if payment is delayed beyond six months from the invoice date, liability arises from the invoice date. For associated enterprises, the earlier of payment or crediting applies.