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Service tax applicability

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24 May 2015 I have issued the advance bill in the month of March 2015 for the period from 01-04-2015 to 31-03-2016. In this bill, I have applied 12.36%. This bill is outstanding upto 31-05-2015. In this regard I have some doubts about collection of difference of service tax from customer. 1)whether I have to collect difference of Service tax from 01-06-2015 or 01-04-2015.

24 May 2015 Switch over to new rates.
To simplify:-

Rule 4 of Point of Taxation Rules change in effective rate of Service Tax:

There are three events that occur in connection with a service

A. Issue of Invoice
B.Payment received
C. Provision of Service

If any two out of the three events have occurred on/before 31st May, the old rate of 12.36% shall be applicable.

If any two out of the three events have occurred on/after 1st June, the new rate of 14% shall be applicable.


So in your case you need to collect differential service tax from 01.06.2015 onward.



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