Service Tax on payment basis

[RAM SHARMA]

Dear Experts, A service tax liability arises when a service receipient make a payment. It means a Service receiver is liable  to pay tax when he will make a payment. Am i write. Pl advice.

Thanks

AI Summary

Service Tax Due on Payment or Within Six Months; Rule 3 Applies for Delays Beyond Six Months. A service tax liability for the recipient arises upon making a payment, particularly under the reverse charge mechanism. The recipient must discharge the tax liability either at the time of payment or within six months from the invoice date, whichever is earlier. If payment is made within six months, the tax must be paid by the 6th of the following month, or interest will accrue. If the payment exceeds six months, the point of taxation is determined by Rule 3 of the Point of Taxation Rules, 2011. One participant noted that the 'whichever occurs first' clause may not be applicable.