what is the point of taxation

[Asked by Guest]

Dear Sir,

As we are manufacturer we have to pay the service tax under RCM.

My question is in case of GTA.manpower supplier and work contract they raised invoices prior to 15 Nov and we are availed the service prior to 15 Nov. But in case of labor contractor it is continuous service for the period of one month and he raised bill at the month end.

but we accounted this invoices after 15 Nov and payment made also after 15 Nov in that case which service tax will be applicable 14% or 14.50 % under Reverse charge mechanism.

Regards

Swapneswar Muduli

AI Summary

Point of taxation determines applicable tax rate for reverse-charge services when payment occurs after a rate change.
The question addresses which tax rate applies to reverse-charge services received before a statutory rate change but paid after it. Under the Point of Taxation Rules, the point of taxation for recipients liable under the Reverse Charge mechanism is the date of payment; therefore the tax and related cess applicable on the date of payment apply, including on continuous services billed at month end.