service tax on service provided prior to it became taxable.

[NEERAJ KUMAR, RANCHI]

Dear sirs,

I have a query, if   any service becomes taxable or exemption is withdrawn  and  invoice  for the period prior to levy of service tax is  issued and payment is also received after levy of service tax, what will be the tax implication on such billing. Please note service has been provided prior to the date when it became taxable and invoice is issued after it became taxable also payment is made thereafter.

[Joginder Pal]

Dear Neeraj, 

You need to give exact date of invoice, service provided and advance/payment received along with date of imposition of Service Tax, to reply your query.

AI Summary

Taxability timing: service provided before levy may be taxable depending on invoice and payment dates. Whether service tax applies when a service was performed before levy but invoiced and paid after levy depends on the relative timing of the service provision date, invoice date and payment/receipt date compared to the commencement date of the levy; exact dates are required to determine the applicable time of supply and consequent tax liability.