Service tax rate
This query is : Resolved
05 June 2015
We have contracts entered with taxi owners for carrying our staff. The taxi owners are individuals. We pay service tax under RCM. The taxi owners gave invoice on June 2nd 2015 for the service provided in May 2015. The payment will be paid by 10th June 2015. Pls clarify whether we have to pay service tax under RCM @ new rate of 14% or @old rate of 12.36%? pls clarify
06 June 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.
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.
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
- Gst on travel by air for business purposes
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- F&O reporting in ITR
- CAPITAL GAIN REDEVELOPED FLAT
- TDS refund Indemnity Bond
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Error in uploading Form 10BD
- Itr processing refund
- Loss of interest in PF transfer from EPFO to Trust
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
