TaxTMI 
TaxTMI 
As per Notn No 45/2012 dated 07.08.2012, security service was included under reverse charge mechanism. Now my doubt is security service rendered in mo July, 2012 for which invoice is dated 31.07.2012. Payment to party and entry in books is made on 20.09.2012 i.e. after 07.08.2012 when notification come. so in this case whether reverse charge will be applicable ?
Reverse Charge Applicablity
26 Nov 2012 
3 Replies 
1639 Views Asked by
Reverse charge applicability: invoice date versus payment date determines liability for security services under notification.
Where security services were supplied before a notification but invoiced before that notification, the invoice date is the point of taxation and reverse charge will not apply even if payment occurs after the notification; if the invoice is raised after the notification, the invoice date governs and the service recipient may be liable under reverse charge for the invoice period without splitting liability between pre and post notification service. (AI Summary)
Where security services were supplied before a notification but invoiced before that notification, the invoice date is the point of taxation and reverse charge will not apply even if payment occurs after the notification; if the invoice is raised after the notification, the invoice date governs and the service recipient may be liable under reverse charge for the invoice period without splitting liability between pre and post notification service. (AI Summary)