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Rate of Service tax

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This query is : Resolved

CA. Jyoti Baid (Querist)

27 March 2009 The rent on immovable property for the month of February 2009 is billed and received in advance on 02.02.2009 in which service tax was charged at the rate of 12.36%.

Now the rate of service tax was changed w.e.f. 204.02.2009.

What will be the rate of service tax from 24.02.2009 to 28.02.2009 in this case?

Do I reqiure to refund the service tax due to the difference in rate from 25.02.2009 to 28.02.2009 to the tennant

Regards,
Jyoti

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

27 March 2009
Service tax is chargeable on the date of billing or receipt of money for service whichever is earlier.

In your case since you have received money on 2-2-2009 and service tax rate on that day is 12.36%. Therefore you have to pay at the rate of 12.36% which you have received.

You cannot refund to the tenant the difference of service tax as mentioned above.

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