Rate of service tax
This query is : Resolved
01 May 2012
If serviice is provided in Mar'12 and invoice raised in Apr'12, then what is the service tax rate going to be - 10% or 12%?
01 May 2012
Dear Angshuman Roy
Actually service tax liability arises only when you received the service considaration .
And it also depends upon method of accounting you followed .
1) If you maintaning accural basis of accounting than rate of service tax will be 10 % and you had to paym service tax before 31march
2) if you are maintaining account on cash basis than your serviec tax liabity will be arise in the month of april when you actually raised the invice and received the considatation for the same .
Thanks
Actually service tax liability arises only when you received the service considaration .
And it also depends upon method of accounting you followed .
1) If you maintaning accural basis of accounting than rate of service tax will be 10 % and you had to paym service tax before 31march
2) if you are maintaining account on cash basis than your serviec tax liabity will be arise in the month of april when you actually raised the invice and received the considatation for the same .
Thanks
01 May 2012
agreed ... and edu cess and SHES will be add here.
01 May 2012
It has been 1 year now that concept of leviability of service tax has been changed from receipt of payment (previous concept) to raising of Invoice by way of Point of Taxation Rules, 2011
Liability to pay service tax arises the day bill is raised (if raised within 14 days)
As regards, to your query, As per Rule 4 of Point of Taxation Rules, 2011, in this case since invoice is raised in Apr. 12, rate of 12% will be applicable.
FOr your kind information, levy of servic e tax and applicability of rate of service tax has nothing to do with method of accounting followed by the assessee. It totally depends on actual legal position as contained in service tax law.
Liability to pay service tax arises the day bill is raised (if raised within 14 days)
As regards, to your query, As per Rule 4 of Point of Taxation Rules, 2011, in this case since invoice is raised in Apr. 12, rate of 12% will be applicable.
FOr your kind information, levy of servic e tax and applicability of rate of service tax has nothing to do with method of accounting followed by the assessee. It totally depends on actual legal position as contained in service tax law.
Message likes :
1 times
07 May 2012
totally agreed with Mr.Nikhil views. One has has to update himself with changes.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Soyabean hsn code and gst rate
- Treatment of Pension ?annuity returns on PMVY
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Regarding IMS Mandatory from 1st July 2026
- Interest on SCSS
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
