21 October 2015
We are Coal loading and transport company pvt.ltd.working under agreement with secl. our billing is fortnight based like 1-15 and 16-30 every month. in May 16-31 bill period which was made in june. service tax is charged @12.36%. is it correct or it has to be charged @14% as the bill date is of june but the period of working was of may. pls suggest
22 October 2015
There is conflict between Act and Rules. Section 67A of the Finance Act provides that date of providing service would be considered for determining the rate of tax. While Point of Taxation Rules provides that tax rate would depend upon the date of completion of service, date of raising of invoice and receipt of money (2 out of 3 events if fall post rate change, new rate applies). In our view, section overrides the rules and accordingly rate should be 12.36%. But keep informed department about the same.
24 October 2015
Thank you Mr. Ashish.
But the department issued letter for the same mentioning that the service tax will have to be deposited for the difference amount
CAclubindia
