POT in case of Reverse Charge is determined in accordance with RULE 7 of the POTR.

In terms of Rule 7 of the POTR, point of TAXATION under reverse charge (except associated enterprises located outside India), shall be as under:

• Payment made within 3 MONTHS – Date of payment;
• Payment not made within 3 months - Date immediately following the end of 3 months

In case of associated enterprises, where the PERSON providing the service is located outside India, POT shall be earlier of the following:

• Date of debit in the books of account of service receiver;
• Date of Payment

Recently a proviso has been inserted in the said rule vide Notification No. 21/2016-ST dated March 30, 2016, which provides that where there is change in the LIABILITY or extent of liability of Service tax to be paid under Reverse Charge, the POT will be determined as under:

• 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 POT shall be àthe date of issuance of invoice.

POT in case of Reverse Charge is determined in accordance with Rule 7 of the POTR.

In terms of Rule 7 of the POTR, point of taxation under reverse charge (except associated enterprises located outside India), shall be as under:

In case of associated enterprises, where the person providing the service is located outside India, POT shall be earlier of the following:

Recently a proviso has been inserted in the said rule vide Notification No. 21/2016-ST dated March 30, 2016, which provides that where there is change in the liability or extent of liability of Service tax to be paid under Reverse Charge, the POT will be determined as under: