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2017 (6) TMI 534 - AT - Service TaxLiability of interest - point of taxation rules (PoTR) - payment of consideration of royalty to their foreign service provider - reverse charge - case of revenue is that as per Rule 3 of Point of Taxation Rules the appellant was required to pay service tax on 06.7.2012 and 06.10.2012 respectively and therefore they are required to pay interest for intervening period - Held that - Rule 7 of Point of Taxation Rules 2011 overrules the other Rules and specifically applies to the case in hand and as per the said Rule the assessee is required to pay service tax under reverse charge mechanism on 6th of next month of the month in which either they have accounted for or made the payment to service provider whichever is earlier. Admittedly in this case the appellant has accounted the services availed for the period April 2012 to June 2012 on 31 July 2012 and the service tax has been paid on 06.08.2012. Further in the case of July 2012 to Sept. 2012 it was accounted on 23.10.2012 and service tax has been paid on 04.11.2012 which is in compliance with the Rule 7 of Point of Taxation Rules 2011. Demand of interest unsustainable - appeal allowed - decided in favor of appellant.
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