TaxTMI 
TaxTMI 
CBEC specifies 'point of taxation' for change in reverse charge liability
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....BEC specifies 'point of taxation' for change in reverse charge liability<br> Query (Issue) Started By: - SANDESH SHINDE Dated:- 1-4-2016 Last Reply Date:- 1-4-2016 Service Tax<br>Got 2 Replies<br>Service Tax<br>Dear Sir, Please explain in simple way regarding CBEC specifies 'point of taxation' for change in reverse charge liability ,Thanks & Regards. POINT OF TAXATION (SECOND AMENDMENT) ....
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....RULES, 2016 - AMENDMENT IN RULE 7 NOTIFICATION NO.21/2016-ST, DATED 30-3-2016. Reply By KASTURI SETHI: The Reply: Under RCM liability of ST has been shifted on Service Receiver either fully or partly. For example ; In Manpower Supply, 100% liability on Service Receiver and in Works Contract Service, liability is shared 50 : 50 between Service Provider and Service Receiver. Now if there is any c....
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....hange in rate of abatement or rate of Service Tax or in percentage of sharing/shifting of liability and Service has been provided prior to the date of change and invoice has been issued prior to that date of change but payment has been received thereafter i.e. after the date of change, the point of taxation will be the date of issuance of invoice. EXAMPLE :Suppose Rate of ST is hiked from 14 % t....
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....o 16% w.e.f. 1.4.16, you have provided service on 31.3.16 and invoice has been issued on 31.3.16 but the payment has been received on 1.4.16 or after 1.4.16 you will pay ST on old rate of ST i.e. 14% and not on 16%. This is just an example for clarification. Reply By Ganeshan Kalyani: The Reply: Nicely explained Sir. This clarifies the essence of the the Notification. Thanks.<br> Discussion Fo....
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