The point of taxation mechanism is used to ascertain the exact point in time when a tax liability arises on a good or service, and the point therefore when the tax liability is required to be paid, either by the buyer or the supplier of the good or the service. This depends on whether there…
Previously, we have discussed time of supply for goods regards the forward charge mechanism; here we place focus on the reverse charge mechanism to determine the time of supply of goods. Firstly, it is imperative to understand that service tax is collected when goods or services are sold to ensure revenue collection from even the…
Service tax is currently applicable under the current indirect tax regime upon the provision of taxable services. The point of taxation helps in ascertaining when the service tax is actually payable to the central government by the recipient or the supplier. As per the point of taxation mechanism, on forwarding charge, the impacts of liability…
Under the reverse charge mechanism, the time of supply for services is determined by payment of tax credit of the government from the recipient of the services or the buyer of the services – this is different from forward charge where the tax payment is done to the government from the supplier itself. Before we…