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Service tax

fathima (student) (130 Points)

07 January 2013

Any one please clarify my doubts in service tax

The case is rent received in january 2012 for the months of may & june 2010. Now what rate should i deduct the service tax? i mean @ 10.3 or 12.36? while filing ST3 i hav to shw this income in st3 of jan-march 2012 r i hav to file st3 for apr-sept 2010?

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8 Replies

MAHESH GARG (AUDIT EXECUTIVE) (334 Points)
Replied 07 January 2013

ST rate applicable till MArch 2012 was 10.3%.

(Guest)

I agree with Mahesh...

Vikas (CA) (1135 Points)
Replied 08 January 2013

As per Board instruction No.545/6/2007-TRU, the date when the service tax was chargeable shall be seen for determination of taxability.

Since, the rent is pertaining to that period prior to 1-4-2011, service tax shall be payable on receipt basis, meaning service tax shall be chargeable @ 12.36%.

MAHESH GARG (AUDIT EXECUTIVE) (334 Points)
Replied 08 January 2013

Dear CA Vikas JI,

12.36% rate of service tax is effective from 1st April 2012 onwards so how can you say that service tax is to be charged @ 12.36% for service rendered and amount paid before it?

Akanksha Jain (Article) (690 Points)
Replied 08 January 2013

The rate of service tax to be charged will be the rate applicable for may-june 2010 i.e 10.3%

Ratheesh Warrier (Senior Executive) (21 Points)
Replied 08 January 2013

I think Mr.Mahesh's point is right. 10.3% Tariff which is applicable from 24th Feb 2009 to 31st Mar 2012. So the rent which pertaining to this period I hope the service tax rate will be 10.3%.

Mallikharjun (Deputy Manager) (304 Points)
Replied 09 January 2013

There are three points to be considered under point of taxation rules.

Date of Invoice
Provision of service
Date of receipt

If any two of above falls before rate change, then old rate is applicable. If any two of above falls after rate change, new rate is applicable.

In your case, please check the date of invoice. Provision of service falls before rate change. Date of receipt falls after rate change. Hence it depends on date of invoice. If it falls before rate change, old rate is applicable. Otherwise new rate.

Correct me if i am wrong.