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

Reverse charge service tax: recipient's payment triggers liability or alternative point of taxation applies; timely deposit required.
Under the reverse charge mechanism the service recipient's tax liability arises on making payment or within the specified period from the invoice date, whichever is earlier; if payment occurs within that period the tax must be discharged and remitted by the normal monthly due date with interest for late payment. If payment is not made within the specified period, the point of taxation is determined under the relevant point-of-taxation rule.