Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Tax Research Unit
Circular No. 144/13/ 2011 – ST
North Block, New Delhi
18th July, 2011
To
Chief Commissioners of Central Excise and Service Tax (All),
Director General (Service Tax),
Director General (Central Excise Intelligence),
Director General (Audit),
Commissioners of Service Tax (All),
Commissioners of Central Excise and Service Tax (All).
Madam/Sir,
Subject: - Clarification on “Completion of service”- regarding.
Representations requesting clarification on “completion of service” as provided
under the Point of Taxation Rules, 2011 and Service Tax Rules, 1994 have been
received from certain sections of service providers that in many situations it
is not possible to issue invoices within 14 days of the completion of the
service since the exact date of completion of service is difficult to identify.
Instances have been given where after the task of providing the service may be
physically accomplished, but certain other formalities are required to be
completed from the client’s end before an invoice can be issued.
- These representations have been examined. The Service Tax Rules, 1994 require
that invoice should be issued within a period of 14 days from the completion of
the taxable service. The invoice needs to indicate interalia the value of
service so completed. Thus it is important to identify the service so completed.
This would include not only the physical part of providing the service but also
the completion of all other auxiliary activities that enable the service
provider to be in a position to issue the invoice. Such auxiliary activities
could include activities like measurement, quality testing etc which may be
essential pre-requisites for identification of completion of service. The test
for the determination whether a service has been completed would be the
completion of all the related activities that place the service provider in a
situation to be able to issue an invoice. However such activities do not include
flimsy or irrelevant grounds for delay in issuance of invoice.
The above interpretation also applies to determination of the date of completion
of provision of service in case of “continuous supply of service”.
- Trade Notice/Public Notice may be issued to the field formations accordingly.
- Please acknowledge the receipt of this circular. Hindi version to follow.
(Samar Nanda)
Under Secretary, TRU
F.No.354/93/2011-TRU