determination of rate of service tax

This query is : Resolved

C.A. YASH AGARWAL (Querist)
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22 April 2009 At which rate service tax will be charged
the rate prevailant at,
the time of receipt or
the time of invoice or
the time of service being rendered????...

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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23 April 2009 The time of provision of service.

C.A. YASH AGARWAL

C.A. YASH AGARWAL (Querist)
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23 April 2009 If Rs. 5 Lakhs received in advance when the service tax rate was Nil and afterwards when the services are rendered the service tax rate is 10%

What will be the sevice tax implications?....

Dayal

Dayal (Expert)
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23 April 2009 It is a consumption based tax
If service has been provided and consumed, service tax will be payable at the rate it prevailed with the service was rendered, irrespective of the change when the invoice is raised

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Tushar Yerawar

Tushar Yerawar (Expert)
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02 May 2009 The rate prevailing at the time of rendering the services.

It has nothig to do with receipt of advance. If you have recd advance but not render the service, then you are not liable to pay service tax on that amount.

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