Applicable rate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2012 our company has booked a bill of processing fee of term loan (from Natioanlise Bank) in financial year 2010-11 and but we have paid this processing fees to the banker on april 2012. what rate of service tax rate applicable on this transction. whether it is aaply on payment basis or accual basis...

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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11 April 2012 Rate of St will be 10.30% on acrual basis, since the service tax has been rendered on or before 31/03/2012

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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11 April 2012 Rate of St will be 10.30% on acrual basis, since the service has been rendered on or before 31/03/2012

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2012 but we have paid gross amount (including service tax)to banker. and banker has to pay service tax on portfolio and banker book income only when they receive so they said to pay 12.36% sevice tax.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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12 April 2012 Bankers are also required to pay service tax on Processing fees under "Banking & Financial services" on accrual basis.

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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13 April 2012 Simply speaking if Bankers has raised invoice before 01.04.2012 then rate of 10% will apply. THis does not have any relevance to provision of service before 01.04.2012. In any case service tax will be paid to government by Banker and not by you.

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