Consultant Bill

[Sanjay Vasava]

Dear Sir,

We hired a person as a consultant, We paid to him fixed amount on monthly basis. Recently he has submitted a bill in letter format, Not proper invoice format. Also he has mentioned, his FY 2016-17 income below 10Lacs.

My question is below.

Why required proper invoice for bill passing/payment ??

Please explain.

Thanks & Regards,

Sanjay Vasava

AI Summary

Consultant Must Provide Proper Invoice for Payment; Exceptions for Lawyers Under Rule 4A Service Tax Rules 1994 A company hired a consultant and paid a fixed monthly amount. The consultant submitted a bill in letter format instead of a proper invoice. The query raised concerns about the necessity of a proper invoice for payment processing. Responses highlighted that a proper invoice is essential, signed and stamped, regardless of income level. Exceptions were noted for advocates or lawyers, as they are not liable for service tax under Rule 4A of the Service Tax Rules, 1994, with the service recipient responsible for tax payment under the reverse charge mechanism. Compliance with service tax rules is required for others.