SERVICE TAX INVOICE PARTICULARS & TIME PERIOD

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Every taxable service provider is required to issue a document (i.e. invoice, bill or challan) within 14 days ( up to 31.03.2012) from either the date of completion of provision of service or receipt of any service charges (whichever is earlier). 

W.e.f.1 April,2012, This time limit has been increased to 30 days ordinarily and 45 days in case of bank and financial institution including NBFC .There is no time limit for issue of supplementary invoice/debit note.


Issue of Invoice Date is Important for service tax due date : Issue of invoice In time is very important as Point of taxation (PoT) is directly related to Date of Invoice .As per general rule of point of taxation ,point of taxation will be as under in two situation.

If invoice is issued within prescribed period of 30(45 days for banks) days from the date of completion of service  
  • Date of Invoice
  • Date of Payment (including advance) whichever is earlier
If invoice is not issued within the prescribed period
  •  Date of completion of the provision of service or payment (including advance) whichever is earlier
Example:

  • Service Provider :Pvt Ltd company ,
  • Service is provided on 05.07.2015 .
  • Date of Payment: 05.09.2015
  • Date of issue of Invoice
    1. 01.08.2015
    2. 10.08.2015

Point of taxation  in different situation is given as under.
  1. Bill issued on 01.08.2015 (within 30 days) = PoT is 01.08.2015 Date of invoice in this case.Accordingly service tax payment due date falls on 5th of Next month i.e 05.09.2015.
  2. Bill issued on 10.08.2015 (after 30 days ) = PoT is 05.07.2015 date of completion of service . Accordingly service tax payment due date falls on 5th of Next month i.e 05.08.2015
So due to late issuance of Bill in second case PoT has been advanced to completion date ,and sevice tax payment due date advance by  one month ,So service provider has to pay interest on the late deposit of Tax.

Note : Pls Note that wef 01.04.2012 , if turnover of person is up to 50 lakh ,he can pay service tax on the basis of payment received from service receiver.(read more here)

CONTENT OF SERVICE TAX BILL 

Invoice should be serially numbered and should contain 
  • The name, address and registration number of the service provider. 
  • The name and address of the service receiver
  • Date of raising of invoice 
  • Description and value of taxable service provided.
  • The amount of ST and Education cess/SHE Cess charged on such service tax
  • Breakup of the amount charged towards the service 
  • Details as to exemption being claimed with reference to the concerned notification 
  • The Education Cess and SHE Cess to be shown separately in the invoice in order to comply with the requirements of CENVAT Credit Rules to facilitate the availment of CENVAT credits by recipient-para 5.1 of Circular No.97/8/2007-ST  dated 23.8.2007. 

• In case any payment towards value of service is not received and such taxable service is provided continuously for successive periods of time and the value of such taxable service is determined or payable periodically, taxable service provider is required to issue an invoice/ bill/ challan within a period not later than 14 days from end of such period. The time limit is extended to 30 days vide Notification No.3/2012-ST dated 17th March,2012


What does a service provider need to indicate on the invoice when he is liable to pay only a part of the liability under the partial reverse charge mechanism?

The service provider shall issue an invoice complying with Rule 4A of the Service Tax Rules 1994. Thus the invoice shall indicate the name, address and the registration number of the service provider; the name and address of the person receiving taxable service; the description and value of taxable service provided or agreed to be provided; and the service tax payable thereon. As per clause (iv) of sub-rule (1) of the said rule 4A ‘’the service tax payable thereon’has to be indicated. The service tax payable would include service tax payable by the service provider.

Special requirements for Goods Transport agency :Besides issuing invoice or bill or challan containing prescribed particulars, Rule-4A(1) requires Goods Transport Agency (other than GTAs whose services are wholly exempted in relation to transport of goods by road) to issue serially numbered consignment note containing: 

  • (i) name of consignor and consignee; 
  • (ii) registration number of goods carriage in which goods are transported; 
  • (iii) details of goods transported; 
  • (iv) details of place of origin and destination; 
  • (v) person liable for paying service tax whether consignor, consignee or GTA. 

Special requirements for Input service provider : Rule 4A(2) requires, every ‘input service distributor to issue serially numbered invoice or bill or challan duly signed by him or person authorized by him containing following details: 

  • (i) Name, address, registration number, serial number and date of invoice or bill or challan of input service provider; 
  • (ii) Name & address of input service distributor; 
  • (iii) Name and address of recipient of credit; 
  • (iv) Amount of credit distributed. 

• In case of input service distributor being an office of a Banking and Other Financial Service provider, any document containing prescribed particulars would be considered as invoice/bill/challan and such document need not contain serial numer.

In case the provider of taxable service is a banking company or a financial institution including a non-banking financial company, or any other body corporate 

If such service provider providing service to any person an invoice, bill or, as the case may be, challan shall include any document, by whatever name called, whether or not serially numbered, and whether or not containing address of the person receiving taxable service but containing other information in such documents as required by general service provider.

In case of the service of transport of passenger,
Service provider may show address of the service recipient 

CLARIFICATION IN RESPECT OF NOTICES/REMINDER LETTERS ISSUED FOR LIFE INSURANCE POLICIES [CIRCULAR NO. 166/1/2013-ST [F.NO. 354/190/2012-TRU], DATED 1-1-2013]

The matter has been examined. Under the Point of Taxation Rules 2011, the point of taxation generally is the date of issue of invoice or receipt of payment whichever is earlier. The invoice mentioned refers to the invoices as issued under rule 4A of the Service Tax Rules, 1994. No tax point arises on account of such reminders. Thus it is clarified that reminder letters/notices for insurance policies not being invoices would not invite levy of service tax. In case of issuance of any invoice, point of taxation shall accordingly be determined.

No Bill For excess payment received up to 1,000: 6th proviso to Rule 4A is inserted w.e.f 1 April,2012 vide Notification No 3/2012-ST dated 17th March, 2012 whereby no invoice is required to be issued where the service provider receives an amount upto ` 1,000/- in excess of the amount indicated in the  invoice & such service provider has opted to determine the point of taxation as per the Point of Taxation Rules, 2011.

Cenvat Credit Is now available to Service Receiver on Receipt of Invoice : Rule 4(7) of the CCR,2004 has been amended providing that Credit of Service tax is to be taken on receipt of invoice, however if no payment of supplier invoice is made within three months, then such CENVAT Credit will have to be reversed and will be allowed only after making its payment.

When Service are not provided after receipt of payment /Adjustment of excess bill :When payment is received in advance for service to be provided but subsequently the services are not actually provided and the consideration for same & the service tax  thereon is refunded back to the service recipient, then service tax paid on such advance received is liable to be refunded back by way of adjustment against other liabilities of service tax for subsequent period. 

W.e.f. 1st April,2011 Service tax Rule 6(3) substituted, whereby excess service tax paid by the service provider in respect of services not so provided or such excess payment is on account of renegotiation of  Invoice due to deficient provision of service, or any term of contract either wholly or partially, such excess payment is allowed to be adjusted against his service tax liability for subsequent period subject to conditions that: 

(i) Assessee has refunded the payment or part thereof, along with service tax thereon to the receiver of service; or 

(ii) Assessee has issued a credit note for value of service not so provided.


Rule 6(3) of Service Tax Rules,1994 which is given below for ready reference:

“Where an assessee has issued an invoice or received any payment, against a service to be provided which is not so provided by him either wholly or partially for any reason, or where the amount of invoice is renegotiated due to deficient provision of service, or any terms contained in a contract, the assessee may take the credit of such excess service tax paid by him, if the assessee:-
(a) Has refunded the payment or part thereof, so received for the service provided to the person from whom it was received; or
(b) Has issued a credit note for the value of the service not so provided to the person to whom such an invoice has been issued.”
Consequences of Non issuance of Proper Invoice :


Penalty u/s 77 

Penalty of up to Rs  10,000 /-

• Failure to issue correct invoice with complete details and account for the invoice in his books of accounts.

Besides penalty ,service provider also impacted due to following reasons 

Impact on Point of Taxation 
As per Rule 3 of the Point of Taxation Rules, 2011, point of taxation shall be determined in the following manner:

  • Date of invoice or payment, whichever is earlier, if the invoice is issued within the prescribed period of 30 days from the date of completion of the provision of service.
  • Date of completion of the provision of service or payment, if the invoice is not issued within the prescribed period as above.

As such, if the invoice is not issued within 30 days from the completion of service, the point of taxation shall be date of completion of the service.

Therefore, if the invoice is not issued within the time, the point of taxation shall be completion of service and the interest shall be levied from the date following the due date for payment of Service Tax determined as per the point of taxation rules.

Impact on Cenvat credit 

CENVAT credit can not be claimed without the invoice (however under reverse charge it can be claimed on the basis of challan of service tax payment 

W.e.f 01.03.2015 time limit for availment of CENVAT Credit on input or input services is one year from the date of issue of invoice.Third proviso to Rule 4(1) and Sixth Proviso to Rule 4(7) of the Credit Rules amended – Enhancement of time limit for availing Cenvat credit on Inputs/ Input Services from 6 months to 1 year

CENVAT Credit can be taken on the basis of supplementary invoice provided original invoice be there.

Rule 4A& 4B reproduced on page-2 Condt.
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Rule 4A. Taxable service to be provided or credit to be distributed on invoice, bill or challan – 

(1) Every person providing taxable service shall, not later than thirty days] from the date of completion of such taxable service or receipt of any payment towards the value of such taxable service, whichever is earlier] issue an invoice, a bill or, as the case may be, a challan signed by such person or a person authorized by him in respect of taxable service provided or agreed to be provided and such invoice, bill or, as the case may be, challan shall be serially numbered and shall contain the following, namely :-

  • (i) the name, address and the registration number of such person; 
  • (ii) the name and address of the person receiving taxable service; 
  • (iii) description and value of taxable service provided or agreed to be provided; and] 
  • (iv) the service tax payable thereon: 
Provided that in case the provider of taxable service is a banking company or a financial institution including a non-banking financial company, or any other body corporate or any other person, providing service to any person an invoice, bill or, as the case may be, challan shall include any document, by whatever name called, whether or not serially numbered, and whether or not containing address of the person receiving taxable service but containing other information in such documents as required under this sub-rule

Provided further that in case the provider of taxable service is a goods transport agency, providing service to any person, in relation to transport of goods by road in a goods carriage, an invoice, a bill or, as the case may be, a challan shall include any document, by whatever name called, which shall contain the details of the consignment note number and date, gross weight of the consignment and also contain other information as required under this sub-rule. 3 [* * * * * *]

Provided also that in case of continuous supply of service, every person providing such taxable service shall issue an invoice, bill or challan, as the case may be, within 5 [thirty days] of the date when each even specified in the contract, which requires the service receiver to make any payment to service provider, is completed:

Provided also that in case the provider of taxable service is a banking company or a financial institution including a non-banking financial company providing service to any person, the period within which the invoice, bill or challan, as the case may be, is to be issued, shall be forty-five days:

Provided that in case the provider of taxable service is providing the service of transport of passenger, an invoice, a bill or as the case may be, challan shall include ticket in any form by whatever name called and whether or not containing registration number of the provider of service and address of the service recipient of service but containing other information in such documents as required under this sub-rule.]

Provided also that wherever the provider of taxable service receives an amount up to rupees one thousand in excess of the amount indicated in the invoice and the provider of taxable service has opted to determine the point of taxation based on the option as given in point of Taxation Rules, 2011, no invoice is required to be issued to such extent.]

(2) Every input service distributor distributing credit of taxable services shall, in respect of credit distributed, issue an invoice, a bill or, as the case may be, a challan signed by such person or a person authorized by him, for each of the recipient of the credit distributed, and such invoice, bill or, as the case may be, challan shall be serially numbered and shall contain the following namely:-
(i) the name, address and registration number of the person providing input services and the serial number and date of invoice, bill, or as the case may be, challan issued under sub-rule (1);
(ii) the name, 9 [and address] of the input service distributor;
(iii) the name and address of the recipient of the credit distributed;
(iv) the amount of the credit distributed.

Provided that in case the input service distributor is an office of a banking company or a financial institution including a non-banking financial company providing service to any person an invoice, a bill or, as the case may be, challan shall include any document, by whatever name called, whether or not serially numbered but containing other information in such documents as required under this sub-rule:”

RULE 4B. Issue of consignment note.- Any goods transport agency which provides service in relation to transport of goods by road in a goods carriage shall issue a consignment note to the recipient of service] Provided that where any taxable service in relation to transport of goods by road in a goods carriage is wholly exempted under section 93 of the Act, the goods transport agency shall not be required to issue the consignment note.

Explanation.- For the purposes of this rule and the second proviso to rule 4A, “consignment note” means a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered, and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, person liable for paying service tax whether consignor, consignee or the goods transport agency.


Download Service tax rules 1994
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SECURITIES (MNP) (TDS)2007-08 ` 01.07.12 01.09.2008 01.10.2012 06.07.2009 07.08.2012 1 PERCENT EXCISE ITEMS LIST 1 sep 1% excise 10 year nsc 10(10C) 1000 court cases judgements supplied to ITO 1000 rupee note 11-2008 11-2010 130 items 14.08.2008 15 august 150 Rs coin 15g 15h 18-12-2009 192(1A) 192A 194 I 194A 194c from 01.10.2009 194H 194j 194LC 1981-2007 2% cst 2% excise 2004 2008 2008-09 FY 2010 206AA 234A 234B 234C 234c interest calculator 234E 23AC 23ACA 23B 24C 24q annexure II 25 paisa coin 271(1)(c) 271B 271H 272B 27A 280 280 challan 281 282 283 29 AUGUST 29.04.2010. 29/08/2008 29/2008 service tax 2g meaning use 3 idiots 30 MARCH 31st March 32-2010 33 of 2009 35(2AA) 35(2AB) 3CD 3g meaning use 40(b) 43B 44 AB EXEMPTED INCOME 44AA 44AB AGRICULTURE 44AB new limit 44AB NON RESIDENT 44ad 46/2012 45/2012 49C 5 day week 5 years post office deposit 5/2011 50 paisa coin 54b 54EC 54ee 54f 54gb 5th paycommission punjab 6 % excise 6 crore advance limit 6/2005 69/2010 6th cpc 6TH PAY COMMISSION 70% of pan etds 7th Central Pay Commission 8 tips to save tax 80C 80ccc 80CCD 80cce 80CCF 80CCG 80d 80DDB 80EE 80G 80GG 80GGA 80GGB 80ggc 80tta 80U 85% of pan etds 86/2008 DATED 13-08-2008 87A rebate 89(1) 89(1) relief calculator 9.5 % rate for private epf 92E 95% of pan etds 98 dated 04/01/08 aadhaar aakash tablet aam admi aar Aayakar Sampark Kendra abatement abolished ACCOUNT PAYEE DRAFT Accounting ACCOUNTING CODE accounting code for services ACCOUNTING FOR GOVT GRANTS accounting standards ACES ADD IN Add-Ins additional relief in budget 2010 adjustment of advance FBT with advance Tax advance rullings advance salary ADVANCE TAX CALCULATOR advance tax challan ADVANCE TAX CUT OFF AMOUNT ADVANCE TAX DATES AFFIDAVIT AG Projects Technologies Ltd RT age 80 addition pension aibea wage revision aibea wage revision latest news aiboa aiboc aiboc wage revision AIG AIR airline ticket booking tds airlines all is well allowances allownces alphabet of inspiration alteration on check allowed alternate minimum tax AMENDED 3CD amendment in companies bill 2011 amendment in gratuity act 2010 amendment in registration service tax AMENDMENT IN SERVICE TAX ON RENT amendment to finance Bill 2010 AMNESTY SCHEME 2007 amt Anna Hazare anna hazzare bill vs govt lokpal bill appeal apply for new pan card against old pan card aqb arbitration arrears of salary arrears of sixth pay ARRERS TAX AS-12 ASBA assessee in default ASSESSMENT REOPENING ASSESSMENT YEAR 2008-09 REFUND atm atm 100 per day atm cash without card atm tips atm wrong debit audit cases itr filing audit limit enhanced Audit Questionaire AUDIT REPORT AUS VS IND.INDIA VS SL Automated teller machine AUTOMATION OF CENTRAL EXCISE AND SERVICE TAX ay 2010-11 bad debts Bank Bank account bank audit bank audit 2012 bank charges BANK SALARY bank strike 06/07/09 and 07/07/09 banking law amendment banknotes banks npa provisioning BARE ACT bare rules BASE RATE BY BANKS bcct BIMAL JAIN biometric pan card black and white form not acceptable black money BLOCK PERIOD blogging bobay refund BONUS bonus share book discount BOOK ON EFILING BOOK REVIEW books of accounts BOOMING INDIAN ECONOMY both House rent allowance both hra and house loan Brass Scrap BRIBE CASE BROKER BSE bsnl broadband bsnl broadband usage bsnl land line sms alert BSR CODES BUDGET 2009 budget 2010 budget 2010-11 budget 2011 BUDGET 2012 budget 2013 BUDGET 2014 BUDGET 2014 CONTEST budget expectations BUDGET HIGHLIGHTS budget live on computer budget live telecast budget notification budget on tv budget speech BUDGET SPEECH DOWNLOAD Budget-2014 Budget-2015 BUDGET-2016 BUDGET08 Business BUSINESS AND PROFESSION MEANING BUSINESS COVERED UNDER 44ab BUY HOUSE C FORM CA CAN ONLY AUDIT MVAT CA CLUB INDIA CA GIRISH AHUJA CA NITIN GUPTA CA PARDEEP JAIN CA ROHIT GUPTA ca services CA sudhir Halakhandi CA Swapnil Munot CA Vikas Khandelwal calculate arrear CALCULATE NEW PAY calculate your emi calculation of tax on salary arrears CALCULATOR CALCULATOR REVISED capital asset capital formation huf Capital gain capital gain account scheme 1988 CAPITAL GAIN INDEX capital gain on repayment of loan capital gain on tenancy rights capital goods capital revenue CAPITAL SUBSIDY CAR LOAN RATE INCREASE carry forward of losses in late return cas cash flow statement CASH PAYMENT DIS ALLOWANCE CASH PAYMENTS EXCEEDING 20000 CASH SUBSIDY cbdt cbec CBI ARRESTED centeral sales tax rate CENTRAL PAY COMMISSION CENTRAL PROCESSING CENTER CENTRALISED PROCESSING OF RETURNS Cenvat CENVAT Credit Rules cgas 1988 challan challan 281 CHALLAN 289 challan correction challan Form 17 CHALLAN STATUS INQUIRY change change in cst rate change in excise duty rates CHANGE IN PAN ADDRESS CHANGE IN PAN DATA change in tds rates in budget changes CHANGES IN SERVICE TAX ACT changes in new itr forms CHANGES IN TDS CHARGES ON CASH PAYMENT OF CREDIT CARD BILL charitable organisation check name from PAN check tds deducted online Cheque cheque bounce cheque payment before due date cheque tender date /realisation date Cheque Truncation CHEQUE VALIDITY child care leave CHILD DEPENDENT PREMIUM CHILD MARRIED PREMIUM child plan childeren name children education allownces chip based atm card cibil cibil for companies CII 2007-08 CII 2008-09 CII 2010 cii 2012-13 CII2011-12 cin CIRCULAR 3/2010 DT 2.03.2010 CIRCULAR 8-2010 CIT v. Emilio Ruiz Berdejo (2010) 320 ITR 190 (Bom.) cloning of atm card clubbing of income COLLECTION CHARGES COLOR SCHEME COMMISSION ON SMALL SAVINGS common error in 2009-10 common error in itr 4-5-6 compa companies bill 2012 COMPANIES RATE COMPANY BILL 2011 company deposit Company Law Settlement Scheme COMPANY REGISTRATION complusory payment of taxes Composition scheme service tax COMPUTER AS FAX MACHINE computer sytem at ito office CONCEPT PAPER configure yahoo mail in outlook express consolidate account statement construction purchase of house Consultancy Service Consumer Price Index continues services CONTRIBUTION TO NEW PENSION SCHEME CONTRIBUTORY PENSION FUND CONVERT FIGURES INTO WORD EXCEL COPARCENER CorpMcash corporation bank correction etds CORRECTION IN PAN DATA correction in section CORRECTION RETURN CORRECTION RETURN.ETDS cost accounting cost audit cost inflation index cost inflation index 2012-13 COST INFLATION INDEX FY 2010-11 COST INFLATION INDEX FY 2011-12 COST OF INDEXATION CALCULATOR court case in entry tax punjab cpc phone number cpf Credit card CREDIT CARD BILL PAYMENT ICICI BANK credit scores cricket team critical illness CROSSED DEMAND DRAFT CRR crr reducred CS DIVESH GOYAL CST CST 3% OR 2 % cst act 1956 cst form CST FORM STATUS cst rate changed CST REDUCE RATE ctt currency CURRENCY TRADING ILLEGAL custom custom changes in budget cusual leave DA MERGE da rate da rate 01.07.2012 da rate january 2013 da rate july 2012 da rate wef 01.01.2012 date extension DDO ASK RENT RECIPT ddt dearness allowance Debit card DEBT EQUITY RATIO debt funds debt trap declared goods DEDUCTION 80C deduction for higher studies deduction on saving bank interst deduction u/s 80DD Deemed income of employee deemed services defective return defence officers defence pay defence pay scales DELAY IN FILING delete ledger in tally DELHI HIGH COURT demat deposit tax of two quarter in single challan depreciation depreciation on car depreciation on commercial vehicle. DEPRECIATION ON INTANGIBLE ASSETS depreciation rate depreciation rate 2009-10 DETAIL AFTER E FILLING DETAIL OF TIN Determination of value DIFFRENT TYPE OF TAXES digital signature din direct payment in bank account DIRECT SUBSIDY direct tax bill direct tax changes in budget direct tax code direct tax code 2009 Disability insurance discussion Paper distribution of salary dividend distribution tax dividend striping dnd do not call. document identification number document ientification number documents required for service tax registration domestic transfer pricing donation dot double taxation dow jones download download 89(1) relief calculator download direct tax code 2012 download form 16A download fvu download idfc INFRA BONDS FORM draft reply drawback rates dtaa dtc DUE DATE AY 2010-11 due date ay 2011-12 due date ex