In case of reverse charge mechanism what will be point of taxation.
In case i have received manpower service in October 2015 (before applicability of SB cess)and I am paying service tax on 06.12.2015 (after applicability of SB cess) , whether SB Cess will be applicable on the bill.
Swachh Bharat Cess applicable under reverse charge for manpower service paid after introduction, as per Rule 7. A discussion on the applicability of the Swachh Bharat Cess (SBC) under the reverse charge mechanism, specifically concerning a manpower service received in October 2015, with payment made in December 2015. Initially, there was uncertainty about whether SBC applied, as the service was received before the SBC's introduction. However, it was clarified that under Rule 7 of the Point of Taxation Rules 2011, the point of taxation is the payment date. Since the payment was made after SBC's introduction, SBC is applicable. Participants debated the interpretation, referencing FAQs and legal provisions. (AI Summary)
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