Claim of service tax prior to registration

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Service under construction service contractor is doing civil work. While doing contractor does not have service tax registration. After getting service tax registration contractor can claime service tax for period of before registration period. More detail is given here. Contractor has work for the period between 01.01.07 to 30.06.07. Service tax registration certificate availed on 20.09.07. Contractor reaised service tax invoice on 01.01.08. Can we paid service tax?. Also note that we had paid service tax returns up to 31.12.07.

AI Summary

Contractor Queries Service Tax Payment for Pre-Registration Period; Liability Depends on Contract Type and Interest Applies if Divisible. A contractor engaged in civil work did not have service tax registration during the period from January 1, 2007, to June 30, 2007, but obtained it on September 20, 2007. The contractor issued a service tax invoice on January 1, 2008, and inquired about the possibility of paying service tax for the pre-registration period. The response indicated that if the contracts were composite and indivisible, there was no liability for services provided up to June 1, 2007. However, if the contracts were divisible, service tax for the past period could be paid with applicable interest after availing of any credits.