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Finance Act 2011 has inserted POINT OF TAXATION RULES 2011

As per these rules for service tax taxability we have to consider the point of taxation. It implies when the service will deemed to have been provided.These points are to be considered for determining the rate of service tax and time when service tax liability will arise.


  • These rules are applicable from 1.4.2011...Also an important point that the assessee has the option to pay service tax as per old law.
  • IF bills are issued upto 30.6.2011 OR Service is completed on or before 30.6.2011.
  • so in sums do check the date and if date falls before 30.6.2011 the answer should be as per both laws ie old law and new rules. 

Now Point of Taxation will be based on 3 dates:

‎1. Date when invoice is issued.

2. Date of completion of service IF INVOICE IS NOT ISSUED WITHIN 14 DAYS

3. Date of actual payment......WHICHEVER IS EARLIEST.

written by CA Ritasha Khanna
& compiled by Gourav Kapoor (Admin) 

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