Service tax rate

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 Please tell me that if advance is taken for performance of some services and service tax is collected @ 10% during F/Y 2011-12 and deposit the same and services are invoiced during F/Y 2012-13(inclusive of service tax)@ 12% as applicable which results in loss of revenue 2%.

My query is- is there is any clarification for it in the upcoming and amended Service Tax Rules.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

05 April 2012 You will have to recover the difference amount of service tax from the cliet and py to the Govt.

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 But if the client denied to pay the additional amount. Basically my query is for Tourism Industry where Amount for packages are pre-decided and we cannot charged excess amount from the clients.

Querist : Anonymous

Querist : Anonymous (Querist)

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

05 April 2012 If you have provided service before 01/04/2012 then erlier rate of 10.30% will be charged.
In that case invoice date is not important.

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 No sir, services are provided after 1/4/2012

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

05 April 2012 But budget is passed in parliament on 16th march, and rate was announced to be changed to 12.36% then how come you have not collected extra amount??
You could have collected extra amount before providing services easily.

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