Point of Taxation Rules:

          • In case of reverse charge services, to bring certainty in the determination of point of taxation, it is proposed to provide that point of taxation will be the payment date or first day after three months from the date of invoice, whichever is earlier. The amended point of taxation will apply to invoices issued after 1st October 2014. A transition rule is proposed to be prescribed [change to have effect from 1st October, 2014].

 

See Point of Taxation Rules, 2011 [As amended]

Point of Taxation Rules: payment date or earlier three month trigger governs reverse charge service invoices after implementation. Point of taxation for reverse charge services is the earlier of the payment date or the first day after a three month period from the invoice date; the amendment applies to invoices issued after the stated commencement and a transitional rule will govern the changeover.