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

Reverse charge liability timing: whether payment or invoice month determines the subsequent tax payment deadline.
Two competing interpretations govern reverse charge timing: one treats the date of payment to the service provider as when the tax liability arises, making the payment month the relevant period for the subsequent due date; the other treats the invoice's deemed provision month as determinative, requiring payment by the 5th/6th day of the month following that deemed month, with electronic payment mechanics potentially affecting the exact due date.