Payment of service tax - Invoice not issued

[Mohammad Ishaq]

dear sir, i completed work contract lamsum basis from 'Isar Engineers' value 1.2Cr which is from Rourkela Steel Plant (Sail) order value is 2.5 Cr, STC 29lacs isar is collected stc but as per our order i not issue any bill and collected st. but stc officer asking your not paid st what have to do?

AI Summary

Subcontractor Must Pay Service Tax Despite No Invoice; Compliance Required as Tax Collected Belongs to Government. A subcontractor completed a work contract for Isar Engineers without issuing an invoice, and the service tax officer questioned the non-payment of service tax. The subcontractor collected service tax but didn't issue a bill. Respondents advised that service tax must be paid regardless of billing, as it is collected on behalf of the government. Options for billing include charging service tax on the value of services excluding materials and VAT or on the total contract value. The subcontractor must ensure compliance with service tax obligations, as the collected tax is not personal income but owed to the government.