Point of taxation rules shift service tax liability to invoice issuance or payment, altering timing and CENVAT credit.
The rules shift service tax timing to an invoice- and accrual-based framework: for non-continuous services the time of invoice issuance is the primary point of taxation, with completion-of-service as a fallback if invoice is not issued within fourteen days; advances are taxable when received. Changes in the applicable rate are governed by the sequencing of provision, invoice and payment events under the concept of change in effective rate of tax. Continuous supply contracts and transitional options are separately governed, and CENVAT credit is allowed on receipt of invoices subject to reversal if payment is not made within the prescribed period. (AI Summary)

Point of taxation rules shift service tax timing to the earliest of provision, invoice issuance, or payment received, altering compliance.
Point of Taxation Rules, 2011 deem service tax liability to arise at the earliest of provision of service (including services "to be provided"), issue of invoice, or receipt of payment; create special rules for continuous supplies exceeding three months linking tax to contractual payment or milestone dates; prescribe priority rules for rate changes and new services; treat associated enterprise entries and import invoices/payments as taxable triggers; and expand the meaning of "invoice," producing significant compliance, accounting and CENVAT credit alignment issues while leaving several operational questions unresolved. (AI Summary)

Preferential-location charges: extra payments to builders for chosen locations or development treated as a separate taxable service.
Payments by a buyer to a builder for choice of a particular location or for internal/external development of a complex constitute a separate taxable service distinct from construction. The levy applies where a location yields an extra advantage attracting payment over the basic sale price, but key terms are undefined. Revenue guidance lists illustrative preferential attributes and development items, while exclusions include parking, payments to public authorities, and services by resident associations. Absence of clear valuation rules and subjective terms creates compliance and assessment disputes and removes abatement relief available to construction services. (AI Summary)

Deemed service: payments to builders treated as taxable service, expanding service tax scope and triggering liabilities.
Amendments via Finance Bill, 2010 insert an Explanation and a deeming clause treating receipts by builders from prospective buyers, received before grant of a completion certificate, as deemed service provided by the builder to the buyer; payments received on or after the operative date are taxable irrespective of traditional service-recipient models. The decisive factors for liability are date of payment and date of issue of completion certificate. The Explanation expands existing chargeability but leaves unresolved issues on service receiver existence, timing of service, valuation and refund treatment. (AI Summary)

Retrospective amendments in tax law revive past liabilities and interest, undermining predictability and taxpayer trust.
Retrospective amendments to tax statutes are increasingly used to counter judicial interpretations deemed adverse, converting historically compliant transactions into new tax liabilities with retrospective effect, often accompanied by interest; this practice is administratively selective-primarily affecting litigating taxpayers-raises discrimination, ethical and credibility concerns, undermines voluntary compliance and judicial authority, and should be exercised with restraint or limited to prospective application to preserve predictability and fairness. (AI Summary)