Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Lesser rate charge

Save Share

This query is : Resolved

Ravi Nallipogu (Querist)
Follow

03 January 2013 In one case involving as per agreement agreed rate of service tax is 10.3%(agreement valid up to 01.02.13)agreement has done before 01.04.12 but now service tax rate changed as per st rules to 12.36%.but here in this case they are paying service tax @10.3% only it is according to agreement they are arguing...is it correct?...at what rate service tax should be charged...we are auditing for service receiver's books...they are charging@12.36% but these people are remitting@10.3% only...so what should we suggest for them...pleae tell me

Guest

Guest (Expert)

03 January 2013 The liability to pay service by default tax shall be on service provider. Hence if the receiver is not paying service tax @12.36% then the provider shall pay service tax @12.36% considering the difference amount as cost of provision of service.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now