service tax liability on proforma invoice & on WIP

[manoj sahu]

1.Is service tax payable on proforma invoice , if included in turnover even though service is not till now billable or approved by client ?

2.Is service tax payable on WIP, included in turnover though bill is not raised or service is not complete or not billable as per workorder ?

We are providing service under Geo-Technical Investigation Works, classification of service under Survey and Map Making Services  and consulting engineering but not works contract service.But in relation to works contract service.
3.Is continuous service applicable to us?

AI Summary

Point of Taxation Rules govern service tax on proforma invoices and WIP when services are complete or payments received.
Service tax on proforma invoices and work in progress is determined by the Point of Taxation Rules: payment before billing is the point of taxation, and where invoicing is not completed within the prescribed invoicing period the date of provision of service becomes the point of taxation. If a service is complete, tax is triggered even absent a timely bill; payments received before billing are taxable. The services were treated as survey/consulting rather than continuous service, so continuous service classification did not apply.