service tax liability against running bill

[vikram singh]

Dear experts,

Please guide,

Case:- I have received final bill of service work and charged service tax on whole, but service tax on running bill not charged by party earlier, detail as below,

Final Bill	Amount
Total service work amount	200000
Add :-service tax @15%	30000
Total bill	230000
Less:-Running bill amount	-50000
Net value	180000

Kindly guide that service tax is require to pay on running bill amount or not? and if yes, than please what rate of service tax will be applicable of service tax?. (earlier or present)

Regard

Vikram

AI Summary

Service Tax Must Be Paid on Running Bills; Interest and Penalties for Non-Compliance. A discussion forum participant inquired about service tax obligations on a running bill for service work. The final bill totaled 230,000 with a service tax of 15% applied to the entire amount, but the running bill of 50,000 did not include service tax. Two experts responded, explaining that service tax must be paid on advance payments or when the invoice is raised. Failure to pay the service tax on the running bill amount would result in interest and penalties. The service provider should have paid the tax by the 5th or 6th of the following month after the bill was issued.