A Company is engaged in providing manpower supply service to various corporate. The invoice can be generated by him only after receiving attendance sheet from the service receiver. Receiving attendance sheet some times takes 3 to 4 months from the date of completion of service but as per Service Tax Rules,1994 invoice has to be raised within 30 days of date of completion of service.
In this case, the Department can ask for interest on late billing and payment of service tax. So to avoid interest whether provisional assessment can be done under Rule 6(4) of the Service Tax Rules, 1994.
Manpower supply firm struggles with invoicing delays, considers Rule 6(4) for provisional assessment to avoid interest penalties. A company providing manpower supply services faces delays in invoicing due to late receipt of attendance sheets, conflicting with the Service Tax Rules, 1994, which require invoicing within 30 days of service completion. The discussion suggests provisional assessment under Rule 6(4) to avoid interest on late billing. One participant recommends requesting timely attendance reports from clients, while another references a government circular clarifying that invoice issuance can be delayed if ancillary activities are incomplete. However, it is noted that this does not apply to situations where such activities are not required, like attendance reporting. (AI Summary)
TaxTMI 
TaxTMI 
