There are several service providers who need to pay service tax. They have to get registered, pay tax as required and file a periodic return with the service tax authorities. To ensure compliance with these provisions of law, a proper system of invoicing, or providing receipts for payments made by customers, should be in place.
Add tax, cess
While making an invoice for the service rendered, add the service tax and education cess as separate items, which are calculated on the amount payable for the service.
List the number
Ensure that the PAN-based service tax registration number is quoted on the invoice. This enables you and the person making the payment to claim a set-off. This helps you to use the service tax received on invoices to pay those who do the same while preparing their invoices.
Your invoice should have a number, date and address, which should match those provided on the service tax registration.
Maintain a record of the service tax paid and received, and ensure this is available as supporting document while filing the service tax return under Form ST-3.