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New rate of service tax

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Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2015 SIR

WHAT IS THE RATE OF SERVICE TAX FROM 1-JUNE 2015, IS IT INCREASE UPTO 14 % ?

PLEASE EXPLAIN

MUKESH KUMAR SABRI

CA Suhas Prabhu

CA Suhas Prabhu (Expert)

26 May 2015 The subsumed rate of ST @ 14% is effective from 01-06-2015. Please refer the table below which provides clarity in applying the revised rate based on Rule 4 of Point of Taxation Rules, 2011.

Case 1: When service is rendered before the change in rate:
Before rate change After rate change Rate to be applied as per Rule
Invoice issued (at 12.36%) Payment received 12.36% - (a)(ii)
Payment received (at 12.36%) Invoice issued 12.36% (a)(iii)
Invoice issued, Payment received 14% (a)(i)

Case 2: When service is rendered after change in rate
Before rate change After rate change Rate to be applied as per Rule
Invoice issued (at 12.36%) Payment received 14% - (b)(i)
Payment received (at 12.36%) Invoice issued 14% (b)(iii)
Invoice issued, Payment received 12.36% (b)(ii)

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