PAYMENT OF SERVICE TAX UNDER RCM

[SURYAKANT MITHBAVKAR]

We have obtained car hire service wherein we have to pay service tax under abatement but please advice when our liability is arise.

suppose bill date is 30.11.2015 and we have made payment against the invoice to the party on 05.12.2015

In the above case when we have to pay service tax under RCM .

AI Summary

Dispute over Service Tax Due Date for Car Hire: Invoice vs. Payment Date Under Rule 6(1) A query was raised regarding the payment of service tax under the reverse charge mechanism (RCM) for a car hire service. The issue focused on determining the correct date for tax liability, given an invoice dated 30.11.2015 and payment made on 05.12.2015. One response indicated that the liability arises on the payment date, suggesting a payment due by 06.12.2015. Another response referenced Rule 6(1), stating that service tax should be paid by the 6th of the following month, implying a due date of 06.01.2016 if paid electronically.