07 January 2013
From April 2012, the Service Tax rate changed from 10.3% to 12.36%. And as per rules we raised supplementary invoice for all invoice raised before March 31st and recieved the payment after April 01st 2012.
I need clarification for below: Whether we have to raise Suplementary Invoice for below situation: We have recieved payment 5th April 2012 but cheque dated 28th March 2012. (For this payment we have raised Supplementary invoice but cleint is not ready to pay because they paid on 28th March).
If the Invoices has been issued before 31-03-2012 and the Service is to be provided after 31-03-2012 then as per Rule 2A of point of Taxation Rules,2011 the payment must be credited in the Account within 4 working days from the date of such change the rate applicable shall be 10.30%. But if the payment is not credited in Bank within 4 working days the rate shall be 12.36% and client has to pay the same. This has been clarified vide circular 334/1/2012-TRU dated 16-03-2012.
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