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
