25 November 2015
Hi, I want some help regarding the following issue.
The service was provided, bill was raised and the payment also made in April, 2015, when the rate of service tax was 12%. But later on, there was some dispute. The service provider demanded more money for the said provision of service. The service provider thus raised a bill for the balance amount in the month of October, 2015. The service Receiver also made the payment for the same in October. The service provider has applied 12% service tax in the bill. Should that be 14%?
25 November 2015
Continuation to our Union Budget, Feb-2015, I would like to inform you that the rate of Service Tax is being increased from 12% to 14% (including cesses). The increase in Service Tax rate will come into effect from 1st June, 2015.
Yesss. You are right, in that case service tax % should be 14% because of you raised invoice in the month of October & payment received in the month of October henceforth rate of tax should be 14%.
CAclubindia
