Taxable Event in Service Tax

Thus, following are taxable events-

(a) Entering into contract for service – Entering into contract for providing service. Once you enter into acontract, it is certainly ‘service to be provided’. (Service tax is actually payable after payment is received,but receipt of advance is not a taxable event. It only defers the liability).
(b) Provision of service – This will happen in cases where contract for providing service was entered into before the service became taxable, but service was provided after the service became a ‘taxable service’.

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