Implicatins of rule 4A

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2010 Hello experts,

Rule 4a of the service tax rules requires every person providing taxable service shall not later than fourteen 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.

However in reality, there are certain sectors like consulting sector where sometimes the approved time sheets for the services rendered are generally received after 15days from the date of completion of service. The invoicing happens only after receipt of the timesheet.

I would like to know the implications, on invoicing beyond the specified timelimit as per rule 4A.

Regards

CA Robin Betala

CA Robin Betala (Expert)
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09 April 2010 There is a penalty for Contravention or nor compliance of Act, Rule under section 77 of Rs 5000.

And there is also a penalty for issuing incorrect invoice of Rs 5000.

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2010 Hi Robin sir,

Due to health reasons I was unable to comeback to your suggestion.

I have one doubt here, as told earlier in consulting business attrition rate is very high. Employee exit happens through out the month i.e on various dates, in that case it is difficult for the organisation to raise invoice for each such case separately. Rather invoice is raised only at the end of the month at one stretch.

I would like to know how to deal with the situation to comply to the requirements of rule 4A.

Thanks and regards,

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