Change in Service Tax liability of Recipient & Point of Taxation
CBEC has notified Point of Taxation (Second Amendment) Rules, 2016 vide Notification No. 21/2016-Service Tax dt. 30-03-2016 to make amendments for the cases where there is change in the service tax liability of the recipient of services, as under;
In the Point of Taxation Rules, 2011, in rule 7, after second proviso, the following proviso shall be inserted, namely,–
“Provided also that where there is change in the liability or extent of liability of a person required to pay tax as recipient of service notified under sub-section (2) of section 68 of the Act, in case service has been provided and the invoice issued before the date of such change, but payment has not been made as on such date, the point of taxation shall be the date of issuance of invoice.”.