Service provider issues service tax invoice after rendering of service. There is separate rule for issuance of service tax invoice:

 

Time Limit of issuance of service tax invoice:

Invoice must be issued within thirty days from the date of completion of taxable services or receipt of payment, whichever is earlier. For banking and other financial services, time limit is 45 days.

For continuous supply of service, invoice should be issued within 30 days from the date of completion of each event which requires service receiver to make payment to service provider.

 

Meaning of completion of taxable services:

completion of services means physical part of services and also auxiliary part like measurement, quality testing etc is completed. So services are completed after completion of all the necessary activities of services. This does not include irrelevant reasons.

Kindly note that issue of invoice is not required when small payment up to Rs. 1000 has been received. Thus this small amount is not covered under point of taxation rules.

 

Details on Invoice:

As per rule 4A (1)

Invoice or bill should be signed by authorized person and should be serially number and date should be mentioned.

Following details should be shown on invoice

1.       Name, address and registration number of person providing taxable services.

2.       Name and address of person receiving taxable services.

3.       Description and value of taxable service provided or agreed to be provided.

4.       Service tax payable. Education cess and SAH education cess should be shown separately in invoice.

Banking and financial services:

Banking and financial services provider should issue invoice within 45 days from date of completion of services or receipt of payment whichever is earlier.

Beside it, there is no need to give serial number to invoice and indication of name and address of person receiving services.

 

 

Passenger Transport services:

In rule 4A(1) of service tax, it is provided that an invoice, bill or as the case may be, challan shall include ticket in any form by whatever name called and whether or not containing registration number of service provider and address of the service receiver but containing other information in  such documents as required under rule 4A (1).This relaxation is applicable to all passenger transport.

 

Other names of Invoice:

Invoice can be issued like other form –debit note, contract note. Chemplast Sanmar Ltd v CCE (2009) . Pharmalab Process v. CCE (2009) Contrary view is also available in godrej Consumer Products Ltd V. CCE (2011).

 

Excess service tax paid:

Sometimes service provider paid service tax to government but payment may not received partly or fully from customer in that case assessee can adjust the excess service tax paid by him against his service tax liability for the subsequent period as per rule 6(3) of service tax rules. Similar benefit is available when assessee received advance and deposited service tax but later service not provided partly or fully.

But this provision is not applicable to bad debts or discount given.

 

You can download service tax bill format here.