Service tax prior to registration

[OM PRAKASH]

SIR, CAN A SERVICE PROVIDER CHARGE SERVICE TAX WHICH RELATES TO THE PRIOR PERIOD OF DATE OF APPLY FOR REGISTRATION?

[SANTOSH SHARMA]

Yes, he can charge service tax because he is allowed to obtain registration within 30 days from the date on which service tax is levied or within 30 days from the date of commencement of business, whichever is later.

Service tax applicability is based on date of levy of service tax on the service and not based on date of application of registration of service provider. Thus, service tax can be levied for the taxable service rendered prior to the date of registration. However, I feel, it is better if the bill charging service tax is raised for such prior period after the regisration date, so that the collection will not be treated as unauthorised collection and service receiver can also avail CENVAT credit based on the bill.

About Sales tax in delhi

AI Summary

Service tax applicability rests on date of levy, allowing charges for pre-registration services; bill after registration to enable credit.
Service tax liability is governed by the date of levy, so providers may charge tax for services rendered before registration; however, issuing tax-bearing bills only after registration is advisable to avoid treatment as unauthorised collection and to ensure the service receiver can claim CENVAT credit.