Rate of tax and period of return

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CA. Praveen Narayan (Querist)

30 April 2012 Dear all,

Date of Service rendered is 31st March 2012 and bill issued on 5th April 2012.

My doubts are:-
1. What is the rate of service tax applicable(10% or 12%) ?

2. Which is the return period(Half year ending March 2012 or Half year ending Sep 2012) ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

30 April 2012 1.Since the service provided in March-12 Service tax applies 10.36%

2. Half year return is two. ( 1st half April-Sep & 2nd Half Oct- March)

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)

01 May 2012 In my opinion as per Point of Taxation RUles:

(1) Although service is rendered in March 12 but since invoice is raised in Apr. 12, the applicable rate is 12%+ (2%+ 1% as Cess)

(2) Return Period is Ist Half Apr. Sep 2012 since liability to pay service tax arises in month of Apr. 2012 and due date for payment of service tax will be 5 th of May 2012

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)

01 May 2012 I agree with CA Nikhil Jhawar's view. Its always better to raise Invoice as soon as the Service is provided. The amount is recorded/accounted only when the invoice is raised.

As the invoice has been issued in April 2012 , it will be covered under the Ist half Yly Return of FY 2012-13.

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Mihir Doshi

Mihir Doshi (Expert)

02 May 2012 According to point of Taxation rules,

I am explaining here in layman's language:
Any of the two events happened before 31st March 2012 then rate would be 10% otherwise 12%

1. Completion of Service
2. Raising of Invoice
3. Receipt of payment

Apply this criteria to your case.

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