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CA Intermediate · Taxation · Tax Invoice; Credit and Debit Notes

Vihaan Consultants, Bengaluru, a registered person, provided consulting services to Rohit Exports (registered) on 12 August and completed the service on that date. It issued the tax invoice on 20 September. Assuming Vihaan is not an insurer, banker or NBFC, what is the position regarding the time limit for issuing the invoice?

The invoice was issued late. An ordinary service provider must issue the tax invoice within 30 days of supplying the service. Starting from 12 August, the period ended on 11 September, so the invoice dated 20 September was outside the time limit; 45 days applies only to insurers and banks.

  1. AInvoice was issued late, since the 30-day period from the date of supply of service expired on 11 SeptemberCorrect
  2. BInvoice was issued within time, since the limit is 45 days from the date of supply
  3. CInvoice was issued within time, since services allow invoice issuance up to the date of payment
  4. DInvoice was issued late, since it should have been issued on the date of completion of service

Explanation

For ordinary service providers, the invoice must be issued within 30 days from the date of supply of service. Supply on 12 August; 30 days end on 11 September. Issuing on 20 September (39 days) is late. The 45-day period applies only to insurers, banking companies, financial institutions including NBFCs.

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