Service Tax Payable under Reverse Charge mechanism

[Guest]

Dear Sir,

Service Tax for the month of March'2014 is payable till 31st March 2014,

we will be taken provision of various invoices in March' 2014 till 10 th April '2014 the same invoices is related to Manpower , Work Contractor , Tour Operator etc it means reversed charge mechanism is involved.

now my query is that:

is Service Tax under reversed mechanism charge is payable on provision which we have taken after 31 st March' 2014 in our financial books.

Please guide us as per point of taxation rule.

With Regards,

Rahul Patel

[Guest]

Service Tax liability under Reverse Charge arises only when payment is made to service provider towards his invoice. There is no liability to pay ST under RC on expenses booked on provisional basis.

AI Summary

Reverse charge liability arises on actual payment to the service provider, not on provisional invoice bookings after the tax period. Reverse charge liability is triggered by payment to the service provider under the point-of-taxation rule; provisional bookings of invoices after the tax period but before payment do not create a reverse charge service tax obligation. The context involves manpower, work-contract and tour-operator invoices recorded provisionally in the March accounts.