TaxTMI 
TaxTMI 
Whether Service Tax is payable on Proforma Invoice
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....hether Service Tax is payable on Proforma Invoice<br> Query (Issue) Started By: - Narayan Mahale Dated:- 16-2-2015 Last Reply Date:- 20-2-2015 Service Tax<br>Got 3 Replies<br>Service Tax<br>Whether under service tax rules, service tax is payable on Proforma Invoice?. Few of the customers, without knowing the requirement under statutory provisions, demand for a proforma invoice, which has no validi....
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....ty under Sales Tax or Service Tax. Proforma being a mere estimate no expenses or assets could be booked under accounts. Despite this, some of the service receiver ask for Proforma Invoice as a precondition of release of Adhoc or advance payments. Therefore, whether under service tax read with point of taxation rules, 2011, service tax is payable or not? No Advance has been received or service h....
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....as been provided but as per terms of agreement service provider is required to issue a Proforma Issue? Please clarify this. Reply By Pradeep Khatri: The Reply: Dear Narayan, Rules say Invoice, not the Pro forma Invoice. Pro forma Invoices are not the valid documents under Finance Act, 1994 read with Rules made thereunder. Regards, YAGAY and SUN (Management, Business and Indirect Tax Consult....
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....ants) Reply By Naveed S: The Reply: Sir, When you intend to buy something particularly from a vendor and need to make payment as advance, then in such cases Proforma invoice is used as a valid supporting document. Proforma invoice is actually issued before the delivery of the goods/services whereas actual invoice is raised on/upon delivery of the goods or services usually as credit payment term....
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....s, else cash memo and contains tax payment details. Reply By Pradeep Khatri: The Reply: Dear Sir, No service tax is payable on proforma invoice as law recognizes Invoice but not the Proforma Invoice. Regards<br> Discussion Forum - Knowledge Sharing ....