At
present Rule 7 of the Point of Taxation Rules 2011 has overriding effect over
all rules.
However
in the budget 2014-15 an amendment has been effected which will be effective
from 1st day of October 2014. Under service tax Return is filed on
half yearly basis i.e. 1st April to 30th Sep and 1st
Oct to march that’s why change has been effected from 1st Oct to avoid any
difficulty in implementation of the provision.
After
change , Rule 7 will not override the Rule 5 which deals with point of taxation
in relation to service tax on new services.
Presently
first proviso to Rule 7 provides that where the payment is not made within a
period of 6 months of the date of invoice, the point of taxation shall be
determined as if this rule does not exist.
But
after amendment, the proviso would be 'where the
payment is not made within a period of 3 months of the date of invoice, the
point of taxation shall be the date immediately following the said period of 3
months.'