Increase of service tax rate
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 June 2015
Generally Point of Taxation for Service Tax in case of Chartered Accountants will be the date of receipt. In case a Chartered Accountant raise an invoice on 25.05.2015 and receive the payment on 05.05.2015, what will be the applicable rate of Service tax?
Is it 12.36% or 14%??
Is it 12.36% or 14%??
01 June 2015
is the given payment date is right ??
01 June 2015
if payment date, date of completion of service and date of raising invoice is before 1.6.2015 then 12.36% shall be charged to client by CA.
01 June 2015
Switch over to new rates.
To simplify:-
Rule 4 of Point of Taxation Rules change in effective rate of Service Tax:
There are three events that occur in connection with a service
A. Issue of Invoice
B.Payment received
C. Provision of Service
If any two out of the three events have occurred on/before 31st May, the old rate of 12.36% shall be applicable.
If any two out of the three events have occurred on/after 1st June, the new rate of 14% shall be applicable.
To simplify:-
Rule 4 of Point of Taxation Rules change in effective rate of Service Tax:
There are three events that occur in connection with a service
A. Issue of Invoice
B.Payment received
C. Provision of Service
If any two out of the three events have occurred on/before 31st May, the old rate of 12.36% shall be applicable.
If any two out of the three events have occurred on/after 1st June, the new rate of 14% shall be applicable.
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