Dear Sir, As a service provider the bills are raised after the service is provided generally. For eg. if the service is provided in the month of June, 2014 the bill would be raised by service provider in June, 2014. Here the service tax liability for service provider occurs in the month of June 2014 or when the payment is received from service recipient. Kindly comment on this topic.
regards,
ganeshan
Service Tax Timing Clarified: Liability Arises on Receipt Basis for Small Firms, Otherwise on Invoice or Payment. A service provider inquired about the timing of service tax liability-whether it arises when the service is provided or upon payment receipt. One response clarified that if the taxable services provided in the previous year were less than 50 Lakhs, the service tax for the following fiscal year is payable on a receipt basis, quarterly, for individuals or small firms. Another response stated that service tax liability arises at the earlier of invoice issuance or payment receipt. (AI Summary)
TaxTMI 
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TaxTMI 
