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<xsl:template name="formatDate">
<xsl:param name="dateTime" />
<xsl:variable name="dd" select="substring($dateTime,1,2)" />
<xsl:variable name="mm" select="substring($dateTime,4,2)" />
<xsl:variable name="yyyy" select="substring($dateTime,7,4)" />
<xsl:value-of select="concat($yyyy,$mm,$dd)" />
</xsl:template>

<xsl:call-template name="formatDate">
<xsl:with-param name="dateTime" select="TestDate" />
</xsl:call-template>

  private string ArchivePath = @"c:\Archive\";
private string InputPath = @"c:\InputFiles\";
private string OutputPath = @"c:\OutputFiles\";

protected override void OnStart(string[] args)
        {
            Transformation();
            try
            {
                // Uncomment this line to debug...
                //System.Diagnostics.Debugger.Break();

                _thread = new System.Threading.Thread(Transformation);
                _thread.Start();
                EventLog.WriteEntry("Successful start.", EventLogEntryType.Information);
            }
            catch (Exception ex)
            {
                // Log the exception.
                EventLog.WriteEntry(ex.Message, EventLogEntryType.Error);
            }
        }

        private void Transformation()
        {
            System.IO.Directory.SetCurrentDirectory(System.AppDomain.CurrentDomain.BaseDirectory);
            // Source paths
            string xsltFilePath = "D:\\Transformation.xslt";
     // refer link http://technovogeek.blogspot.ie/2012/07/how-to-display-current-date-and-time-in.html  for using sample XSLT
            // Compile the style sheet.
            XsltSettings xslt_settings = new XsltSettings();
            xslt_settings.EnableScript = true;
            XslCompiledTransform xslt = new XslCompiledTransform();
            xslt.Load(xsltFilePath, xslt_settings, new XmlUrlResolver());
            try
            {
                string[] inputfileEntries = Directory.GetFiles(InputPath);                
                foreach (string fileName in inputfileEntries)
                {
                    // Load the XML source file.
                    XPathDocument doc = new XPathDocument(fileName);

                    // Create an XmlWriter.
                    XmlWriterSettings settings = new XmlWriterSettings();
                    settings.OmitXmlDeclaration = true;
                    settings.Indent = true;

                    if (!System.IO.Directory.Exists(OutputPath))
                        System.IO.Directory.CreateDirectory(OutputPath);
                    string file = System.IO.Path.Combine(OutputPath, System.IO.Path.GetFileNameWithoutExtension(fileName) + "_OUTPUT.xml");
                  
                    XmlWriter writer = XmlWriter.Create(file, settings);

                    if (!System.IO.Directory.Exists(ArchivePath))
                        System.IO.Directory.CreateDirectory(ArchivePath);
                    string destFile = System.IO.Path.Combine(ArchivePath, System.IO.Path.GetFileName(fileName));
                    System.IO.File.Copy(fileName, destFile, true);
                    // Execute the transformation.
                    xslt.Transform(doc, writer);
                    writer.Close();
                    System.IO.File.Delete(fileName);
                }
            }
            catch (Exception ex)
            {
                string str = "Unable to process the Conversion ";
            }
        }

<?xml version="1.0" encoding="iso-8859-1" ?>
  <xsl:stylesheet version="2.0"
    xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
    xmlns:msxsl="urn:schemas-microsoft-com:xslt"
    xmlns:my="put-your-namespace-uri-here"
    exclude-result-prefixes="msxsl my">
  <xsl:output method="xml" version="1.0" encoding="UTF-8" indent="yes"/>
  <msxsl:script language="C#" implements-prefix="my">
    public string NowDate(){
    return DateTime.Now.ToString("ddMMyyyy");
    }
    public string NowTime(){
    return DateTime.Now.ToString("hhmmss");
    }
  </msxsl:script>
  <xsl:template match="/">
    <xsl:value-of select="my:NowDate()" />
<xsl:value-of select="my:NowTime()" />
 </xsl:template>
</xsl:stylesheet>