applicability of service tax

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AT THE TIME OF PAYMENT OF ADVANCE TO THE PARTY FOR PROVIDING SOME SERVICE THE RATE OF SERVICE TAX WAS 10 %. BUT AT THE TIME OF PROVIDING THE SERVICE THE RATE OF TAX WAS 12%. SO AT WHICH RATE SERVICE TAX WAS PAYABLE TO THE PARTY?

SINCE THE PRICE WAS INCLUSIVE OF SERVICE TAX, THE PARTY ALREADY DEPOSITTHE SERVICE TAX ON ADVANCE RECEIVED @ 10%.

Replies (2)
Since at the time of payment the rate was 10%, the service tax was payable at 10% only. The rate of service tax at the time of payment is applicable even if the services are rendered later.
10% sholud be considered as accural is more imp than receipt.


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