Rate of tax

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Mamata Sethi (Querist)

25 June 2012 Please tell me what rate should be charged if the services have been provided before the change in the rate of tax and payment is received after the change in the rate of tax.............

CA Navin Jain

CA Navin Jain (Expert)

25 June 2012 if payment is received after 04.04.12 rate of ST is 12.36%

Mamata Sethi

Mamata Sethi (Querist)

25 June 2012 thanx......is there any thing we can do to reduce the liability because the old rate charged in the invoice and now because of change in the rate the liability is increased.

CA Navin Jain

CA Navin Jain (Expert)

25 June 2012 NO, YOU CAN NOT REDUCE THE TAX LIABILITY, FOR INCREASE IN ST YOU NEED TO OBTION SUPPLEMENTARY INVOICE

Mamata Sethi

Mamata Sethi (Querist)

25 June 2012 please explain me about supplementry invoice

CA Navin Jain

CA Navin Jain (Expert)

25 June 2012 its like credit note

RENGARAJ R.K

RENGARAJ R.K (Expert)

25 June 2012 Supplementary invoice means, debit note for the difference in the service tax portion, say 2% plus cess 3% on Service tax. It is obligatory on the part of the service receiver to pay the Government levy due to upward revision.

rengaraj r.k

Mamata Sethi

Mamata Sethi (Querist)

26 June 2012 Thanx u so much sir......

CA NIKHIL OZA

CA NIKHIL OZA (Expert)

26 June 2012 If Invoice was also issued b4 change in rate then 10.3% would b applicable.

CA Navin Jain

CA Navin Jain (Expert)

26 June 2012 Rate 12.36% shall be applicable

CA NIKHIL OZA

CA NIKHIL OZA (Expert)

26 June 2012 The rule goes as follows:-
If Any of the two out of three below comes in any period then the rate applicable to that period is to be applied:
1) completion of work
2) issue of invoice
3) payment for such work.

so if job was completed & invoice for such was issued b4 change in rate then prv rate would b applicable.

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