applicability of new rate of service tax

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This query is : Resolved

RAMESH BABU (Querist)

05 March 2009 Sir,

We have an invoice Dt 21-02-2009,for Rs. 1000000 and service tax @12.36% amounts to Rs. 123600 total together 1123600.

This bill is pertaining to period for 01.01.2009 to 31.03.2009(advance).

Now, i requested for @ what rate Service Tax will be admitted to this bill.(12.36% or 10.30%)

pl clarify

Thanking you,

yours faithfully

G Ramesh babu

Shyam Lal Naik

Shyam Lal Naik (Expert)

05 March 2009 Question is Judicial in nature.

I am explaining a reverse situation.

Insurance premiums are collected in advance and the coverage is fon the following 1 year.

Tax rate was increased in the meantime.

Department demanded the differential tax. Tribunal held that differential tax is not payable. tax rate applicable on the date of signing of the contract is applicable.

You may apply the ratio of the judgement.

Dayal

Dayal (Expert)

05 March 2009 The applicability is related to rendering of services ( as this being consumption based tax). since service has not been rendered for the period March 2009.The bill can be revised by the service provider.

for the period Feb it is not ideal to revise, since it is only for 4 days which is bound to fall under disput/objection by the department.

RAMESH BABU

RAMESH BABU (Querist)

07 March 2009 Thanking you for providing valuable information.

yours faithfully

G Ramesh babu

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