Clarification - biling system

[Guest]

We are registered as a courier agency, earlier we used to raise invoices to customers on 14 Days basis, but there is demand from most of the customers to raise invoices on Monthly basis. As per Service Tax rules it is mentioned that the Billing will have to be done on 14 day basis.. Kindly suggest us.

[Surender Gupta]

In fact if you do not raise invoice within 14 days from the date of provision of service the same may be treated as contravention of the provisions, practical difficulties may force the service provider to take such steps. Therefore, in the absence of any lenient view in the rules, it is purely your own decision to determine the timings.

AI Summary

Courier Agency Seeks Monthly Invoicing Despite 14-Day Service Tax Rule; Flexibility in Regulations Limited. A courier agency inquired about changing their invoicing cycle from every 14 days to a monthly basis due to customer demand, despite Service Tax rules requiring a 14-day billing cycle. The response indicated that failing to issue invoices within 14 days could be seen as a violation of these rules, but acknowledged that practical difficulties might necessitate such changes. Ultimately, the decision on invoicing frequency rests with the service provider, given the lack of flexibility in the existing regulations.