06 October 2010
I have a doubt that when in given a service rate of s.tax is 12.36 5 , but when i receive the payment rate of service tax is 10.30% which rate i should consider?
06 October 2010
As per Sec 66 of the finance act the taxable event arises when services are provided, hence the rate that is applicable on the date of rendering of service has to be considered for payment of service tax and not the rate when payment is received for the taxable services provided, in your case you need to consider 12.36%(the taxable event rate) and not 10.3%.
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