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New service tax rate applicability on reverse charge

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(Querist)
28 July 2015 As well known, new service tax is applicable from 1st june 2015 i.e.14%. my query is under reverse charge mechanism tax to be deducted on payment basis. now if for any transaction under reverse charge if invoice is issued before 1st june but payment made in june for the services then which rate of tax is applicable? 12.36 or 14%? as per my understanding point of taxation under reverse charge is the date of payment. hence tax rate applicable on the date of payment should be taken. but it is not mentioned anywhere. i need clarification for the matter.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
28 July 2015 As per Rule 4 of point of taxation rules considering invoice date service tax applicable at 12.36%.
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ravi chauhan

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ravi chauhan (Querist)
28 July 2015 but rule 4 is applicable for general conditions. in case of reverse charge rule 7 is applicable and its overrides the rule 4.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
28 July 2015 Rule 4 is applicable for change in rate of tax your query is on that only.
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ravi chauhan

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ravi chauhan (Querist)
28 July 2015 thanks.
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