Invoice date - service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2015 Dear Experts,

Service rendered for March 2015 . However the registration number for service tax obtained on 27th May 2015. Should the invoice date charging service tax be March or after the registration date?

Thanks in advance.

Atit Shah

Atit Shah (Expert)
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27 May 2015 In my Opinion it should be after date of Registration else you will be liable for penalty of late registration as service tax collected on 31st march and you should get registered within 30 days. i.e. 30th April. So better issue bill after date of registration

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2015 Thanks Atit. If i keep invoice date of may for services rendered for March 2015, will there be any interest? Please note that the liability is on receipt basis since taxable turnover last year was less than 50 Lakhs. Hence receipt basis should be strictly followed? Because as per POT invoice date is more than 30 days

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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01 August 2024 For services rendered in March 2015, but with the service tax registration obtained on 27th May 2015, the invoice date should be after the registration date. Here are the detailed implications and considerations:

### Invoice Date and Service Tax Registration

1. **Service Tax Liability:**
- According to service tax rules, the liability to pay service tax arises only after the service provider is registered under service tax. Since you obtained the registration on 27th May 2015, you cannot charge or collect service tax for any services rendered prior to this date without having a valid service tax registration.

2. **Invoice Issuance:**
- You should issue the invoice with a date post 27th May 2015. The invoice should reflect the date after the registration date to stay compliant with service tax regulations.

### Receipt Basis for Small Service Providers

1. **Receipt Basis of Taxation:**
- Since your taxable turnover was less than 50 lakhs in the previous year, you are eligible to pay service tax on a receipt basis rather than an accrual basis.
- This means your liability to pay service tax arises when you actually receive payment for the services rendered.

### Point of Taxation (POT) Rules

1. **Invoice Date More Than 30 Days:**
- The Point of Taxation Rules, 2011 state that if the invoice is issued within 30 days from the date of completion of the service, the point of taxation shall be the date of issue of invoice. If the invoice is not issued within 30 days, the point of taxation shall be the date of completion of the provision of service.
- However, in your case, since the registration was obtained after the services were rendered, you need to align the invoice date with your registration date to charge service tax correctly.

### Interest Implications

1. **Service Tax Payment:**
- If you issue the invoice in May 2015 for services rendered in March 2015 and the payment is received post-registration, your liability will arise at the point of receipt of payment.
- There should not be an interest liability if the payment is received after the registration date and the invoice is dated correctly as per your registration status.

### Practical Steps

1. **Invoice Issuance:**
- Issue an invoice dated after 27th May 2015 for the services rendered in March 2015.
- Ensure all relevant details are mentioned, including the service tax registration number.

2. **Maintain Records:**
- Keep detailed records of the service provided, the date of service, and the date of invoice issuance.
- Document the registration date and any correspondence with the service tax authorities regarding your registration.

3. **Payment Receipt:**
- Ensure that the service tax is paid on receipt of payment for the services, considering the receipt basis of taxation applicable to you.

### Example Invoice

**Sample Invoice**

**Service Provider Details:**
- Name: [Your Name/Company Name]
- Address: [Your Address]
- Service Tax Registration Number: [Your Registration Number]

**Invoice Details:**
- Invoice Number: [Unique Serial Number]
- Invoice Date: [Date after 27th May 2015]
- Service Provided: [Description of Service]
- Date of Service: March 2015

**Amount Details:**
- Service Charge: [Service Charge Amount]
- Service Tax (at applicable rate): [Service Tax Amount]
- Total Amount: [Total Amount Including Service Tax]

**Declaration:**
This invoice is issued in compliance with the service tax regulations as per the service tax registration obtained on 27th May 2015.

**Authorized Signatory:**
[Signature]
[Your Name]
[Designation]

---

### Conclusion

Issue the invoice with a date after your registration date of 27th May 2015 for services rendered in March 2015 to comply with service tax regulations. The service tax liability will arise on a receipt basis, and maintaining accurate records will help ensure compliance and avoid any interest liabilities. If you have any doubts or require further clarification, consulting with a tax professional or the service tax department can provide additional guidance.