Definition of Point of taxation

"Point of taxation" means

the point in time when a service shall be deemed to have been provided;


In simple language, it means determining time when service tax is payable to government


Why is Point of Taxation Importamt

  • It is to ensure that service tax is deposited to government on time and also to ensure that there is no late payment of interest
  • Also Service tax rate may change from time to time. Hence it helps in determining   whether old rate is applicable or new rate.
  • Also when service was earlier exempt later become taxable. Here, it helps in determining   whether or not exemption available 


Central Govenment has notified Point of Taxation,Rules 2011 in this regard

Lets study these rules in detail one by one

  1. Service Tax
  2. Point of Taxation Rules

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.