Invoice is a commercial document showing itemized products and services
rendered and its agreed value. The buyer must pay seller as per term agreed. Let us discuss how to prepare a service invoice as per service tax rules. Following are the guidelines to prepare a service invoice.
- Bill should be serially numbered
- Name address registration number of the service provider should be mentioned.
- Service receivers name and address mentioned in the invoice.
- Description of taxable services provided.
- Value of the taxable services should be mentioned
- Service tax payable on taxable services mentioned
- Education cess and Higher secondary Education cess should be mentioned separately
- Date of billing should be mentioned.
- Billing should be done within 14 days of service.
- Signature of the authorized person is compulsory
- Rounding is not necessary on each bill, but you need to round up on tax payment.
Invoice should be prepared against advance received from service receiver and it is taxable immediately after receipt of the amount. So invoice has to be prepared in such cases no matter if service is provided or not.
General guidelines for preparing an invoice
- Mention the term E&OE at the end of the invoice. “This means that Errors and omission Excepted”. By adding this term you reserve the rights to correct errors in the invoice due to omission, oversight etc.
- Mention your PAN Number in invoice.
- Total bill amount mentioned in figures and words.
- Mention payment term, provision for clarifying billing related queries etc.
- Mention telephone No, Fax No, email id if required for easy communication
You can download a sample service tax invoice format here
Hope that the post is a useful one. If you have any queries and clarification please use our comment section
Easy to understand for step of preparing invoice. Thanks.
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Thanks!!!
simple to follow and easy to understand.
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Very nice artilce covering all aspects at one place.
Thank you!!!!!!!!!!!
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thanks.easy to understand
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i m Accountant here.
how to i calculate service tax & how can i do?
i cant undrstand.
please tell me.
my email id is rohanchavan03@yahoo.in
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Thanks.
Easy to understand
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I think, this is sufficient to have the basic knowledge about Service tax n its process till paying to the Govt. of India.
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i pay the tax on service provided by transporter( Freight Bill)which is transpoter has not paid &
How can i get the setoff aginst Transporter has paid the tax
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hi i want know about ser’tax in hospital field pl mail me aharishlichfl@gmail.coM
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Hi,
very good article.Keep posting.
Bhupal
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While paying the service tax quarterly, one invoice is omitted and another one on which service tax has been paid subsequently stood cancelled. How to deal with these two scenes in the next service tax quarterly payment.
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Please let us know whether (inclusive Service Tax ) these words are required to be printed on the invoice in case where Service Tax is not shown seperately i.e. in case of hotels where Service Tax is applicable on short period accomodation.
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thanks for giving the more information
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Hai
Dear Sir/Madam,
i did raise one bill for Rs.150000/- + ST@10.30% , 0n 31-5-2011, but payment received on 6-6-2011, full amount , when i have to pay this tax amount ?
Muvva Srinivas
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Saju Reply:
June 19th, 2011 at 1:35 am
Hello srinivas
This rule has been changed and , from 1 st april 2011 point of taxation rules applies. that is you have to pay tax on service invoice issue or on receipt of payment whichever is earlier
you can expect an article soon in this regard
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Please my questions to you that service tax rate of percentage detailed and billing formate related for any plant and tower service tax charges do to accept.please accept my application and qukily information is very important and mail this email id.
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