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Service Tax in Invoice

(Guest)

I have a small doubt.

I have recently set up a Service Firm, for which I registered Service Tax within one month of its startup. I did it for a purpose. Right now I have not crossed the limit to charge/collect Service Tax to my client

The doubt I have is with regards to Invoice: I want to issue an Invoice now. Should I need to mention my Service tax registration number on it? and also should there be a service tax column in the invoice (though it would be nil, I suppose) ?

Awaiting any advice. Thanx in advance.

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9 Replies

CA bhargava (CA) (2017 Points)
Replied 12 October 2010

Sir,

With regard to my practise,and expierence and the refering Cenvat credit Rules 2004 ,

Credit of the Input tax can be taken only when it is clearly mentioned in the Invoice

either in Rule 11 or in srevice...

Therefore even if we provide the ST reg. No. in the invoice which we issue ,if

it does not metion the amount on service tax , it is ipmlied that it is not charges at all..

so even with ST no. we can issue invoice with out mentioning the amount of service tax as we are not collecting it...

(Guest)

Thanks bhargava for your input. I need to be clear.

See, I have registered for Service tax for my firm, though not reached the Limits. Now;

Is it OBLIGATORY on my part to include/mention Service Tax Number and Service Tax Column in the Invoice....?

CA bhargava (CA) (2017 Points)
Replied 13 October 2010

its, not an obligation, but u can quote u r service tax number, with out service tax not collecting ....

as u did not reached the limit..

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 13 October 2010

The very purpose of haviug a ST number is that you expect to cross the limit and pay the ST. ideally please get the number printed in the invoice. You can charge the ST once you decide to do after around 9 lakhs or so as the exemption is for receipts and therefore there is no point in being out of pocket.

praveen kumar (Director) (21 Points)
Replied 14 October 2010

Hi ,

I have one doubt , in financial year up to 10 months we issued all bills without service tax because

we are under limit but next two months if will cross 10 lakhs i will collect ST but what about previous

invoice ? Is it requires pay even old invoice also? we have to pay from our pocket or what we have to in

this case, please answer for this query.

Thank you

iliyas khan (Account asstt.) (26 Points)
Replied 18 October 2010

Sir,

I am mohd iliyas khan. working as an asstt. Accountants in a Electrical construction co. i want to know what is the rate of wct in delhi, & TDS for contractors & sub-contractors for 2010-11.

thanks

1 Like

Naresh (Chartered Accoutant) (42 Points)
Replied 22 December 2010

Dear Praveen Kumar,

Service tax is to be paid on the after crossing the basic exemption limit.

For instance exemption limit is Rs. 10 lakhs. You have to collect and pay service tax on amount beyond invoice bil of Rs. 10 lakhs. Suppose you have already invoiced Rs. 9,90,000 and not deducted service tax on it (as it is exempted). Your next invoice is for 30,000, then you have to collect service tax from the client on Rs. 20,000 and pay to the department. Remember the word used is" exemption ", therefore no question of taxing the same.

Gulam Mustafa (CEO) (21 Points)
Replied 01 June 2011

Hi,

i have 2 questions:

1) Is is necessary to metion servicetax no on invoice if i have it and crossed the limit.

2) Do we need to wait every financial year to reach the exemption to collect the service tax.

Thank you in advance.

Prasad (Sr. Manager) (617 Points)
Replied 01 June 2011

Gulam It is better to mention the service tax no on the invoice and also the category under which you are providing the service. it will help you in differentiating the different services and also if the service receipnt is claiming input credit it will help your clients. the exemption limit is currently 10L if you have billed 10 lakhs any thing over that is taxable, it will be occurance of 10L not the financial year. with the introduction of point of taxation rules you have to pay at the tax on accrual basis not on collection basis, hence your collection will be your invoicing