TaxTMI 
TaxTMI 
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?
Payment of service tax - Invoice not issued
11 Dec 2009 
6 Replies 
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Service tax liability: receipt of payment triggers obligation to remit tax even if no invoice issued.
Receipt of payment for taxable works-contract services creates an obligation to remit service tax even if no bill or invoice was raised. Valuation may follow either segregation-charging tax on the service portion excluding materials and VAT-or a composite lump-sum rate on the total contract value. Amounts collected as service tax are held for the government and must be paid over. Goods value and VAT on goods should not be taxed under service tax, though specific notifications may affect labour contractors. (AI Summary)
Receipt of payment for taxable works-contract services creates an obligation to remit service tax even if no bill or invoice was raised. Valuation may follow either segregation-charging tax on the service portion excluding materials and VAT-or a composite lump-sum rate on the total contract value. Amounts collected as service tax are held for the government and must be paid over. Goods value and VAT on goods should not be taxed under service tax, though specific notifications may affect labour contractors. (AI Summary)