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Service tax adjustments

Kuldeep (Trainee ) (100 Points)

28 December 2010

Dear sir, I have an querie is there any provision for following situation in Service Tax Act, We recieves advance payment from parties when service tax rate is 12.36% but we provide service when service tax rate fall down to 10.30% Thanks for your concern N have a prospering new year for all you readers!!

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 28 December 2010

situation 1)

you have paid service tax on payment basis on receipt of amount irrespective of the invoice date, then u have to charge 12.36%

situation 2)

you have accounted the amount as advance and to be settled against bills raised, on the date of invoice/ bills- then charge 10.3% and make refund of 2% to clients.