Service tax due date

Dear Mr. Durga Prasad,

You may note the following –

1. Since, the invoice has been issued within 30 days (Rule 4A of the Service Tax Rules, 1994) of the completion of service, the earlier of the invoice date or the payment received date shall be considered to be the point of taxation. (Rule 3 of the Point of Taxation Rules, 2011); Hence, in you example it the due date shall be 5/6 of May;
2. No Service Tax can be imposed on mere provisions made in the books for a service. It shall only be imposed on provision of services.

Hi vikas vishakarma,

Thanks for ur reply, but my query is not resolved completely

1) As per ur point no.b, it is not clear that if service has been completed then only revenue will be recognised.

2)How to pay tax on 31st March if the service is recognised on 31st March.

3) How to convince the service dept officials that invoices raised in April for the service recognised on 31st March and paying tax after one month.

You may only prove such thing by saving that the income recognised is merely provision as per AS-9 and is not a completion of service.

You further explain this by supporting through your invoices, contracts, agreements, orders, etc.