Arrears Billing - Service Tax query

Queries 2030 views 3 replies

koti reddy

ICWAI

28 Points Posted on 12 September 2009

Our's is a Pvt. security providing Co., we have to raise arrear bills relating to the period April'08 to Aug'09 in the month of Sep'09, and the query is at what rate the service tax is to be charged on the arrears amount for the above said period. So,we want to clarify that the applicable rate of service tax is 10.30% for the entire arrear bill period (or) we have to charge 12.36% from Apr'08 to 23rd Feb'09 and 10.30% w.e.f 24th Feb'09 to Aug'09. Please guide me in solving this matter, with supporting statutory backup if possible.

Replies (3)

EKALABYA TALUKDAR

SERVICE TAX CONSULTANT

666 Points Posted on 12 September 2009

Originally posted by :koti reddy
"	Our's is a Pvt. security providing Co., we have to raise arrear bills relating to the period April'08 to Aug'09 in the month of Sep'09, and the query is at what rate the service tax is to be charged on the arrears amount for the above said period. So,we want to clarify that the applicable rate of service tax is 10.30% for the entire arrear bill period (or) we have to charge 12.36% from Apr'08 to 23rd Feb'09 and 10.30% w.e.f 24th Feb'09 to Aug'09. Please guide me in solving this matter, with supporting statutory backup if possible.	"

THE BILLING DATE IS THE MAIN FACTOR OF CHARGING SERVICE TAX.. If your billing date is on or after 24 February 2009 you should claim 10% + 2% + 1% SERVICE TAX otherwise 12% + 2% + 1%

Pradeep Narsaria

Service

39 Points Posted on 15 September 2009

It is not the billing date but the date when the services were provided which is important to decide the rate of service tax. Hence, service provided prior to 24.02.2009 will be billed with ST @ 12.36% and services provided w.e.f 24.02.09 will be billed with ST of 10.3%

EKALABYA TALUKDAR

SERVICE TAX CONSULTANT

666 Points Posted on 15 September 2009

Originally posted by :Pradeep Narsaria
"	It is not the billing date but the date when the services were provided which is important to decide the rate of service tax. Hence, service provided prior to 24.02.2009 will be billed with ST @ 12.36% and services provided w.e.f 24.02.09 will be billed with ST of 10.3%	"

1. A JOB STARTED BEFORE 24th FEB AND ENDED AFTER 24th FEBRUARY. What will happen ?

2. You have finished a job on 23 rd FEB 2009 and billed on 24the FEB - How much you are going to charge.

3. Will the Service Receipent agree with your view and will the Internal Audit of Servir Receiver will allow such Norms

PLEASE INFORM ME