Service tax rate applicable
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 November 2014
SERVICE PROVIDE IN SEPTEMBER MONTH FOR FINISHING WORK BUT BILL IS ISSUED IN OCTOBER MONTH THEN SERVICE TAX ON PREVIOUS PERIOD WAS 60% (i.E 40% ABATEMENT) NOW RATE OF SERVICE TAX INCREASE 70% (I.E aBATEMENT 30%)
MY QUESTION IS THAT WHICH RATE APPLICABLE.
MY QUESTION IS THAT WHICH RATE APPLICABLE.
21 November 2014
Refer Rule 4(a)(i) of Point of Taxation Rules -
In case a taxable service has been provided before the change in effective rate of tax— (i) where the invoice for the same has been issued and the payment received after the change in effective rate of tax, the point of taxation shall be date of payment or issuing of invoice, whichever is earlier;
I understand that you got the payment after invoicing in Oct - and hence the rate effective in Oct would be applicable. However if you have received the payment in Sep or before rate prevailing in Sep would apply.
In case a taxable service has been provided before the change in effective rate of tax— (i) where the invoice for the same has been issued and the payment received after the change in effective rate of tax, the point of taxation shall be date of payment or issuing of invoice, whichever is earlier;
I understand that you got the payment after invoicing in Oct - and hence the rate effective in Oct would be applicable. However if you have received the payment in Sep or before rate prevailing in Sep would apply.
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