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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Regarding appeal to GSTAT
- Regarding TDS Applicability For Director Remuneration
- Multiple trade mark
- Transporter Declaration form
- Copyright software
- Value of property in capital gain
- LC charges in relation to Asset purchased should be Capitalised ?
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- RULE 86B APPLICABILITY IN QRMP TAX PAYER
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
