Raising of bills

[MANOHAR LAL]

As per new service tax rules tax is to be deposited on accrual basis i.e. on raising of the bill.

Now what is the time limit for raising a bill after rendering the service.

AI Summary

Invoices Must Be Issued Within 14 Days of Service Completion Under Point of Taxation Rules 2011 to Avoid Tax Liability. A query was raised regarding the time limit for issuing a bill after providing a service under the new service tax rules, which require tax to be deposited on an accrual basis. The response clarified that according to the Point of Taxation Rules 2011, effective from July 1, service tax must be paid based on the earlier of the invoice date or payment date if the invoice is issued within 14 days of service completion. If not, the tax is due on the service completion date. Therefore, invoices should be issued within 14 days to avoid earlier tax liability.