Applicability of hike in service tax

Now that Service Tax (ST) has been increased from existing 10% to 12% w.e.f. 01-Apr-2012, I have below mentioned query:

My mobile's billing cycle is from 15th March to 14th April.

I want to know, whether I have to pay 12% for the bill generated for the billing cycle of 15th March to 14th April or will it be 10% for bill between 15th March to 31st March and 12% for bill between 1st April to 14th April.

I understand that in 2nd case, it will be tough situation for mobile companies because of mathematical calculations, however I wish to know what exactly is the rule book.

Kindly provide necessary inputs.

Replies (5)
the ST on mobile bills will be at 12%.

AGREEE WITH ABOVE 12.36%

As per POT rules, it is cleared mention that if there is change in effective rate and invoice is raised and payment is received after the change then revised rate will be applicable.

i will agree with Saikiran's answer, so, ST shoulb be payable  @  12.36% (inclusive of cess)

The date of billing is to be considered under the point of taxation rules.  Therefore 12.36% will be charged by the mobile operators.

 

regards,

 

rengaraj .r.k

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