India Amends Point of Taxation Rules: New Rules on Invoice Payment Timing Effective from October 1, 2014

The Government of India issued Notification No. 13/2014, amending the Point of Taxation Rules, 2011, effective from October 1, 2014. The amendment modifies Rule 7, specifying that if payment is not made within three months of the invoice date, the point of taxation will be the day following this period. Additionally, a new Rule 10 addresses invoices issued before October 1, 2014, where payment is outstanding. If payment is made within six months, the point of taxation is the payment date; otherwise, it is determined as if Rule 7 and Rule 10 do not apply.