Payment date is the Point of Taxation under Service Tax for CAs: CBEC

Applicability of Point of Taxation Rules to practising Chartered Accountants (CAs)

The CBEC vide Notification 25/2011 – Service Tax dt. 31st March, 2011  has amended Rule 7 of the Point of Taxation Rules, 2011 in respect specified service providers which includes practising Chartered Accountants (individuals or proprietary firms or partnership firms).

As per the above referred amendment notification, now the point of taxation under service tax for CAs will be the date on which payment is received. Reportedly, this amendment has been made as per the representations made by the Institute of Chartered Accountants of India.

ICAI Announcement dt. 31st March, 2011

CBEC Notification 25/2011 – Service Tax dt. 31st March, 2011

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