A simple guide to determining the due date of service taxes under the Point of Taxation Rules 2011.

1. Arkay & Arkay | Chartered Accountants | Delhi | +919910124927 | info@arkayandarkay.com
Determining Due date for Payment of
Service tax
Under new Point of taxation Rules. Please save a copy for ready reference
The due date for payment of Service Tax is 5th of the month succeeding the month in which
the Point of taxation lies (However, payment for the month of March is required to be made
by 31st of March itself) Hence it becomes important to properly understand the correct point
of taxation in order to avoid both interest and penalty payable upon late pavement of taxes.
The following table details possible scenarios in the normal course of business, including the
Point of Taxation and Due date of payment for each of the scenarios.
S.No Date of completion of Date of Invoice Date of receipt of Point of taxation Due date of payment of Service
service Payment Tax
1 15 July 2011 20 July 2011 25 July 2011 20 July 2011 05 August 2011
2 15 July 2011 30 July 2011 01 August 2011 15 July 2011 05 August 2011
3 15 July 2011 30 July 2011 25 July 2011 25 July 2011 05 August 2011
4 15 July 2011 30 July 2011 25 July 2011 (Part) 25 July 2011 for 05 August 2011
1 August 2011 (remaining) part and 15 July
2011 for remaining
5 15 July 2011 20 July 2011 10 July 2011 10 July 2011 05 August 2011
6 15 July 2011 30 July 2011 10 July 2011 10 July 2011 05 August 2011
7 20 July 2011 04 August 2011 06 August 2011 04 August 2011 05 September 2011
8 20 July 2011 29 July 2011 06 August 2011 29 July 2011 05 August 2011
9 20 July 2011 Not raised 15 August 2011 20 July 2011 05 August 2011
As can be seen in the highlighted cells, it is important to raise invoice at the correct time to
avoid payment of taxes before receipt of income. It is also important to raise the invoice
before 14 days of completion of service else Point of taxation is said to be the date of
completion of service.