service tax payment

[Ramakrishnan Seshadri]

Dear Sir,

One of our service provider doing catering services is paying the service tax every month only on the payment received on the invoices. Whether this is correct or the service tax has to be paid on the invoices raised every month and not to wait till the payment is received on this invoices.

Kindly experts please clarify whether this procedure is correct or how to pay service tax.

Most urgent.

Thanks & Regards,

S.Ramakrishnan

AI Summary

Point of taxation: service tax is triggered on invoice issuance unless a small provider opts to pay on receipt basis.
The point of taxation is generally the date the invoice is issued; if no invoice is issued within the prescribed period, the date of completion of service applies. Individuals and small partnership providers may elect to pay service tax on receipt of payment instead, subject to the prescribed payment schedules and potential interest for delayed payment.