Service tax applicability
This query is : Resolved
24 May 2015
I have issued the advance bill in the month of March 2015 for the period from 01-04-2015 to 31-03-2016. In this bill, I have applied 12.36%. This bill is outstanding upto 31-05-2015. In this regard I have some doubts about collection of difference of service tax from customer. 1)whether I have to collect difference of Service tax from 01-06-2015 or 01-04-2015.
24 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.
So in your case you need to collect differential service tax from 01.06.2015 onward.
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.
So in your case you need to collect differential service tax from 01.06.2015 onward.
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