Service tax applicability on unbilled revenue

As per Point of Taxation Rules, Service Tax liability will arise at the time date of invoice(i.e., if invoice is issued before 30 days of completion of service, otherwise take date of completion of service) or amount received whichever is earlier.

In your case service tax liabilty will arise at the time of completion of contract (completion of contract means billing date agreed between the parties).

You can check in POT rules. IN Rule-3 Determination of Point of Taxation in that continuous supply of service.

Since you have already provided the service to your client,you can book the charges in your book of accounts and thereafter as per" Rule 2A of Point Of Taxation Rules 2011" you can make payment of Service Tax in the financial year 2012-13 itself although invoice is raised in April 2013.

Hi Prabhat on what basis Rule-2A will apply, Invoice is not raised and amount is not received.Then for continuous service we have to check Rule-3

Dear Friends, 

Thanks for your views,

Kindly let me know do we have to pay Service Tax on unbilled Revenue ?

Invoice will be raised for the same in Mid of Apirl.2013 ,Hence Kindly give me your valuable views for better understaing.

Thanks in advance,

KUMAR

You can pay after invoice (i.e., Service Tax liability will arise on the date of Invoice) 

You can pay after invoice only(i.e., Service Tax liability will arise on the date of Invoice mid of April only)