Point of Taxation Rules, 2011

Point of Taxation Rules, 2011

    Rule-3

General Rule
Invoice	Service	Time of Invoice	POT	Remarks
Issued	Provided/ Agreed to be provided	within period as in rule 4A of ST rule (30days)	Time of issue of Invoice or Receipt of payment whichever is earlier	For Continuous supply of services, Date of completion of event as specified in contract, Shall be date of completion of services.
Not issued	Provided/ Agreed to be provided	NOT within period as in rule 4A of ST rule (30days)	Date of completion of service or Receipt of payment whichever is earlier

    Rule 4

POT in case change in tax rate
Relevant Rules	Date - Before change in rate 10%	Date – after change in rate 12%	POT	Effect on Rate
4(a)(i)	Service provided	Raised Invoice & Payment received	Date of Payment or Issue of invoice whichever is earlier	12%
4(a)(ii)	Service provided Invoice issued	Payment received	Date of Issue of Invoice	10%
4(a)(iii)	Service provided Payment received	Invoice raised	Date of Payment	10%
4(b)(i)	Invoice raised	Service provided payment received	Date of Payment	12%
4(b)(ii)	Raised Invoice Payment received	Service provided	Date of Payment or Issue of invoice whichever is earlier	10%
4(b)(iii)	Payment received	Service provided Invoice raised	Date of Issue of Invoice	12%

    Rule 5

Payment of tax for New Services
Invoice	Time	Payment	Time	Taxability
Issued	Before service become Taxable	Received	Before service become Taxable	NO TAX
Issued	Within 14 days of becoming taxable service	Received	Before service become Taxable	NO TAX

    Rule 7

POT in case of specified services or person
Person	POT	Remarks
The person required to pay tax as recipients of services (reverse charge mechanism NN-30/2012)	Date on which payment is made	When payment made after 6 month of invoice date, This rule will not be applicable.
In case associated enterprises where provider is located outside India	Date of debit in books of receiver Or Date of payment whichever is earlier

    Rule 8

POT in case of Copyrights or IPR
Service	Condition	POT
Copyright Trademarks Design Patents	Where consideration is not ascertainable when service performed & subsequently use of these by a person other than provider give rise to payment of consideration	When payment received or Invoice issued whichever is earlier.

    Rule 8A

Where POT cannot be determined as per these rules, Central Excise office may order & determine POT

    Rule 6 ST Rules

Any service provider who is Individual, Proprietor or partnership firm with turnover less than ₹50lakh

In preceding F/Y POT can be date of receipt of consideration for the service.

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