Point of taxation governs service tax incidence as earlier of invoice, payment, or completion, with transitional safeguards.
Point of taxation now arises at the earlier of invoice issuance, receipt of payment (including advances), or completion of service where no invoice is issued within 14 days; transitional provisions and a limited option to continue payment-on-receipt are provided. Cenvat credit is triggered by receipt of invoice, subject to required reversal if payment remains unpaid beyond a prescribed period, and credit under reverse charge is allowed only on payment. Circular clarifications refine eligibility principles and trading valuation policies. (AI Summary)