Rent on Immovable Property

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R.PADMANABHAN (Querist)
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26 February 2009 Govt. has issued a notification on reduction of Service Tax with effect from 24.02.09. We are issuing the bills for the rent on immovable property with Service tax rate of 12.36%. My dobut is, in the bill pertaining to the month of Feb'09, what rate should charged. 10% or 12.36%

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 February 2009 Services rendered before 24/2/2009 and included in Feb'09 bill attracts 12.36% service Tax.

K V Subba Rao

K V Subba Rao (Expert)
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26 February 2009 I am working for a Courier Company. For few customers including Banks etc., we raise Courier Bills once in every month.

I have worked out the rate on weighted average basis (this title may not be correct; so take the spriit) based on number of days. That is, 12 % is in force for 23 days and 10 % is in force for 5 days in calender month of Feb 09.

I found the average working out to be 11.893571 percent. Our Company will raise Feb 09 Bills adopting this rate (including two Cesses).

On earlier occassions, when upward revisions took place with effect from dates during middle of a month, we adopted similar procedure.

I would suggest you follow the same. If there is any better approach, I will be happy to take note of before we take up printing Feb 09 Bills in the first week of Mar 09

If you want to be extra cauttious, arrange for two seperate Bills, Vouchers and Cheques for period upto 23rd and from 24th Feb 09

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