Amendment on 24 Feb, 2009

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CA Mayank (Querist)
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25 March 2009 As per the latest amendment of service tax if a person is charging commercial rent or consultancy fees for the month of Feb 09 at the end of the month then service tax will be charget @ 10% or 12% or proportionately.

If rent is charged in advance then at the intial stage service tax will be charged @ 12% but after comming amendment for that month service tax will be 12% or later on debit note will be issued.
Please tell me.

Dayal

Dayal (Expert)
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26 March 2009 SERVICE TAX.

1. Rate of Service Tax - The rate of service tax is reduced from existing 12% to 10% w.e.f 24th February, 2009 vide notification no 8/2009-ST dt 24th February 2009.
Thus, the effective rate of service tax is 10.30% w.e.f 24-02-2009.

2. The reduced rate is applicable only for the services which are rendered w.e.f 24th February 2009 and not for services which have been provided prior to said date.

3. It is advised that the bill for the services rendered upto 23rd February 2009 should be raised as on 24th February, 2009 by applying the old rate of 12.36 %.

CA Mayank

CA Mayank (Querist)
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11 April 2009 Still can u clearify what will happen when commercial rent is paid in advance. what is treatment of service tax

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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15 April 2009 If the rent was paid in advacne the rate applicable on the date of the advacne would have to be reckoned as the services to be provided in future are also liable.

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