service tax liability on proforma invoice & on WIP, Service Tax

[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?

Posts / Replies

[Brijesh Verma]

Service tax is leviable on invoicing according to POT Rules. However if any payment is received before billing then each such payment becomes POT. Further if invoicing is not done in 30 days after provision of services... then date of provision of service is POT.

Now on the basis of this thumb rule the answers are:

1. If service has been complete... tax is payable even if not billed in 30 days

2. Yours is not classifiable as CSS

[Pradeep Khatri]

This is subject to applicability of Point of Taxation Rules