Clarification in respect of biling of chartered accountants in ST-3

[Guest]

In case of chartered accountants, they maintain their books of accounts on cash basis and pay the service tax on receipts basis. The billing raised by them on their clients do not appear in their regular main books of accounts- It appears only in a memorandum account outside the main financial books. Under such circumstances, how far is it necessary for them to show the Billing raised in the revised format of ST-3 Could u pl clarify? Thanks

[Surender Gupta]

For the purpose of service tax the method of accounting is not relevant. To overcome this difficulty, service tax rules itself has been amended that bill / inovice shall be issued within 14 days. Therefore, without linking the details required in the ST-3 form with the account books, you have to comply with the statutory requirements.

AI Summary

Service tax billing requirements: invoices must be issued within the prescribed period and ST-3 disclosures remain mandatory despite cash accounting. For service tax purposes the method of accounting is not relevant; chartered accountants who keep billings in a memorandum account must nevertheless disclose those billings in the ST-3 return. Service tax rules were amended to require that a bill/invoice shall be issued within 14 days of provision of service, and taxpayers must comply with the ST-3 disclosure requirements and the statutory invoicing time limit regardless of whether billings appear in their main books.