Service tax

This query is : Resolved

Share Report Follow Query Ask a Query

Sujoy Banerjee

Sujoy Banerjee (Querist)
Follow

31 May 2015 pls someone confirm the new service tax rate and whether it is applicable from 1st june or not.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

31 May 2015 Revised Service Tax Rate of 14% will be applicable from 01.06.2015.

Refer Notification No 14/2015 Dated 19.05.2015 and department clarification from link given below, which is self explanatory:

https://www.caclubindia.com/forum/files/555789_20150519211107_notification.pdf

https://www.caclubindia.com/forum/files/555789_20150519213343_tru_letter.pdf

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

31 May 2015 Switch over to new rates.
To simplify:-

Rule 4 of Point of Taxation Rules change in effective rate of Service Tax:

There are three events that occur in connection with a service

A. Issue of Invoice
B.Payment received
C. Provision of Service

If any two out of the three events have occurred on/before 31st May, the old rate of 12.36% shall be applicable.

If any two out of the three events have occurred on/after 1st June, the new rate of 14% shall be applicable.