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Point of taxation is

Invoice issued for Service Provided

Or

Amount received

Whichever is earlier

 

Hence  Service tax is applicable on Invoice Issued or Advance received whichever is earlier 

 

Exception

As per Service tax rules, invoice to be issued within 30 days of service provided. In case, invoice not issued within prescribed time, as per service tax rules(30 days in normal cases,45 days in case of NBFC),

then Point of taxation is

Date of Completion of service

Or

Amount received

Whichever is earlier

 

 SUMMARY

INVOICE ISSUED WITHIN 30 DAYS

OF SERVICE PROVIDED

INVOICE NOT ISSUED WITHIN 30 DAYS

OF SERVICE PROVIDED

POT Is

Date of Invoice

or

Date of Payment

which ever is earlier

POT is

Date of Service Provided

or

Date of Payment

which ever is earlier

   

 

Examples

Q1 Service provided on 15 July

What is the last date of issuing invoice?

View Answer

Q2 Suppose invoice actually issued on 18 August and amount received on 20 November

When is Service tax to be deposited?

View Answer
  1. Service Tax
  2. Point of Taxation Rules
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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 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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