APPLICABILITY OF REVERSE CHARGE MACHANISM

[MOHAMED RAFIQ]

IS THE REVERSE CHARGE MACHANISM APPLICABLE ON SERVICE PROVIDED BEFORE 01/07/2012 BUT BILL RAISED AND PAYMENT MADE AFTER 30/06/2012?

AI Summary

Reverse Charge Mechanism: No Additional Liability for Services Taxed Before July 1, 2012, Even if Paid Later. A query was raised about the applicability of the reverse charge mechanism on services provided before July 1, 2012, but billed and paid after June 30, 2012. Two respondents clarified that if the point of taxation and liability were determined before July 1, 2012, the new provisions do not apply. Payments made after this date do not impose additional liability on the service receiver for such services. This clarification aligns with the guidelines in the Education Guide of Service Tax by CBEC.