Section 11
Service tax due
(a)
in the case of taxable service, at the time when payment is received for the service provided to the customer by the registered person; or
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(b)
in the case of imported taxable service, at the time when the payment is made or invoice is received for the service, whichever is the earlier.
(1A)
The Director General may, upon application in writing by any registered person and subject to such conditions as he deems fit, approve the service tax in respect of the taxable service provided by the registered person to be due at the time the invoice is issued.
(2)
Where the whole or any part of the payment for any taxable service provided by the registered person is not received from the customer within a period of twelve months from the date the taxable service was provided, the service tax shall be due on the day following that period of twelve months.
(3)
Notwithstanding subsection (1)—
(a)
the service tax required to be accounted in any return made under subsection 26(3) shall be due on the day the return is required to be furnished to the Director General;
(aa) where any taxable service is provided by any registered person and payment for such taxable service is made to any machine or device operated by coins, tokens or the like, the service tax required to be accounted shall be due on the day when the coins, tokens or the like are collected from such machine or device;
(b)
the service tax in respect of betting and gaming which are prescribed to be taxable services shall be due at the time as prescribed;
(c)
where an arrangement or agreement for the provision of any taxable service is made by any person, who is a taxable person under this Act, within the period beginning from 1 June 2018 and ending immediately before the effective date, and the taxable service is provided or performed on or after the effective date—
Service Tax 23
(i)
the arrangement or agreement for the provision of such taxable service shall be deemed to have been made on the date such taxable service is provided or performed notwithstanding any payment, wholly or partly, is received or invoice is issued, for such taxable service during such period;
(ii)
any payment received within such period or on or after the effective date, or invoice issued within such period, shall be deemed to have been received or issued on the date such taxable service is provided or performed; and
(iii)
service tax shall be charged and levied on such taxable service and shall become due on the date such taxable service is provided or performed.
(4)
Where the taxable service referred to in paragraph (3)(c) are betting and gaming, the service tax in respect of such betting and gaming shall be due at the time as prescribed under paragraph (3)(b).
(5)
Paragraph (3)(c) shall not apply to a service which is prescribed as a taxable service after 1 September 2018.