1.

What Will Be The Point Of Taxation (“pot”) For Determination Of Kkc Taxability For A Service Provider?

Answer»

POT in case of new levy on services shall be governed by Rule 5 of Point of Taxation Rules, 2011 (“the POTR”).

As per Rule 5 read with explanations inserted vide Notification No. 10/2016-ST dated March 1, 2016, only in following two situations (given below), the KKC shall not be payable and in all other cases, KKC is to be paid:

  • Ø Invoice issued and PAYMENT received against such invoice before such SERVICE becomes taxable i.e prior to June 1, 2016
  • Ø Payment received before the service becomes taxable i.e prior to June 1, 2016 and invoice has been issued within 14 days of the DATE when the service is taxed for the first time.

POT in case of new levy on services shall be governed by Rule 5 of Point of Taxation Rules, 2011 (“the POTR”).

As per Rule 5 read with explanations inserted vide Notification No. 10/2016-ST dated March 1, 2016, only in following two situations (given below), the KKC shall not be payable and in all other cases, KKC is to be paid:


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