We have provided some services to a company on 22nd March. For the service we have not raised the invoice yet neither have we received any payment from them.
We will be raising the invoice in April'14.
My query is whether we need to pay the service tax on the service provided in the FY 2013-14 or in the FY 2014-15 when the invoice will be raised.
Thanks in advance:)
Sir,
You are eligible paying duty when you business turnover is more than 10 lakhs. Otherwise you not have to pay service tax.
Point of taxation shall be the earlier of the two events:
1. the time when the invoice for the service provided or to be provided is issued or
2. when the person providing the service, receives a payment.
atleast not in march as invoice or payment date whihever is earlier in your case would be applicable. So service tax shall be paid afterwards....
As per point of taxation rule
if the payment is received before raising invoice then irrespective of raising invoice, service tax is payable.
further as per point of rule- invoice has to be raised with in 14 days from the completion of taxable services
Dear Sampath please FYI 14 days condition was changes to 30 days....
In this case you can pay ST during 2014-15.
If invoice is raised within 30 days of completion of service(22nd march) then point of taxation shall be the date of invoice (ST liability will arise in 2014-15). But if the invoice is not raised within 30 days from completion of service(22nd march), then date of completion of service shall be taken as point of taxation(ST liability will arise for 2013-14)
SKAA & Associates
New Delhi
CA Inter
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