PUT or POST method?
this is a great explation from SO post  about HTTP method PUT versus POST which is very good explation and enlighting.
PUT versus POST is not really about replace versus create, but rather about idempotency and resource naming.
PUT is an idempotent operation. With it, you give the name of a resource and an entity to place as that resource's content (possibly with server-generated additions). Crucially, doing the operation twice in a row should result in the same thing as if it was done just once or done 20 times, for some fairly loose definition of “the same thing” (it doesn't have to be byte-for-byte identical, but the information that the user supplied should be intact). You wouldn't ever want a PUT to cause a financial transaction to be triggered.
POST is a non-idempotent operation. You don't need to give the name of the resource which you're looking to have created (nor does a POST have to create; it could de-duplicate resources if it wished). POST is often used to implement “create a resource with a newly-minted name and tell me what the name is” — the lack of idempotency implied by “newly-minted name” fits with that. Where a new resource is created, sending back the locator for the resource in a Location header is entirely the right thing to do.
Now, if you are taking the policy position that clients should never create resource names, you then get POST being the perfect fit for creation (though theoretically it could do anything based on the supplied entity) and PUT being how to do update. For many RESTful applications that makes a lot of sense, but not all; if the model being presented to the user was of a file system, having the user supply the resource name makes a huge amount of sense and PUT becomes the main creation operation (and POST becomes delegated to less common things like making an empty directory and so on; WebDAV reduces the need for POST even further).
The summary: Don't think in terms of create/update, but rather in terms of who makes the resource names and which operations are idempotent. PUT is really create-or-update, and POST is really do-anything-which-shouldnt-be-repeated-willy-nilly.