Need A Financial Product Forums Tax Savings Should the payment of service tax be made for the billed amount or for the amount received?

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    Anoop Bhalla
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    Should the payment of service tax be made for the billed amount or for the amount received?

    #47407

    The Service Tax is liable to be paid on the billed amount or the invoice amount. If the invoice is not issued within a duration of 14 days then the tax becomes payable on the date of such completion of the provision for the service and on the amount which is mentioned in the invoice. In all possible cases, the issue of invoice is mandatory as per the provision of the Rule 3 of Point of Taxation Rules, 2011. In case the amount of tax to be paid in a situation where the person providing the services receives a payment before the period of 14 days then it will be on the basis of the extent of such payment received by the service provider.

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