TaxTMI 
TaxTMI 
Dear Sir, As per rule of Service tax, service tax is payable to Govt is on Payment received basis.Suppose our practice is to bill to any party is on quarterly basis and at the time billing the service is non taxable as per service tax law. after one month of billing ( suppose bill raised on 01.04.07 , up to 30.06.07 but service tax is applicable wef on 15.05.07 ) service tax become applicable on it. What would be the service tax treatment ? 1. When till today payment of bill not recd. 2. When payment of bill recd. same day i.e. 01.04.07 for full quater w/o service tax as service tax not levied on it. Thanks Manoj
Applicability of service tax
18 Jan 2008 
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Receipt of money as point of taxability: new service tax applies proportionately from levy introduction irrespective of billing timing.
The point of taxability is the receipt of money for provision of services; new levies create a service tax liability for the proportionate period after their introduction regardless of billing or receipt timing. For services already taxable, amounts reported and taxed on receipt (including advances) remain unaffected by later rate revisions or additional levies for those already-reported receipts. (AI Summary)
The point of taxability is the receipt of money for provision of services; new levies create a service tax liability for the proportionate period after their introduction regardless of billing or receipt timing. For services already taxable, amounts reported and taxed on receipt (including advances) remain unaffected by later rate revisions or additional levies for those already-reported receipts. (AI Summary)