02 November 2012
we are going to issue a bill against repair and maintenance service, service provided during the period 2010-2011 & 2011-2012 but bill was not raised at that time and neither any money has been received from party agaisnt the service provided
queries-
i) What will be the rate of service tax, if we issue bill in the month of November '2012?
ii) Do i have to pay any interest or penalty for this? If yes, kindly provide the reference or detail.
According to your link given i checked that penalty is required to pay of Rs. 10K but regarding interest and rate i have still some confusion. As the POT says - (a) the time when the invoice for the service provided or to be provided is issued (Provided that where the invoice is not issued within fourteen days of the completion of the provision of the service, the point of taxation shall be date of such completion). (b) in a case, where the person providing the service, receives a payment before the time specified in clause (a), the time, when he receives such payment, to the extent of such payment.
So, according to POT the rate of service tax will be the completion of service and rate would be 10.3% for 2010-11&2011-12 and 12.36% for 2012-13.
Regarding Interest as the party has not paid to us, payment liability is not there, so still do we need to pay interest though we have not raised the bill earlier.
CAclubindia
