Applicability of service tax rate

This query is : Resolved

anmol Jain (Querist)
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10 June 2016 I have a postpaid connection of vodafone. My monthly bill generated on 5th of every month. Vodafone charged 15% service tax on the bill of May month which is generated on 5th june. Is it correct or not?

Shikha Sharma

Shikha Sharma (Expert)
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11 June 2016 Yes. It is correct. As per the Point of Taxation Rules, KKC of 0.5% would be applicable on any invoice raised after 1 June 2016 (irrespective of when the service was provided).

PAWAN KUMAR

PAWAN KUMAR (Expert)
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11 June 2016 Incorrect. The provider cannot charge KKC in the bill itself. The rate will have to charge @14.5% only instead of @15%.