Service tax after tax changes from 1st april 2012

rates 2312 views 6 replies

bhaskar

sr sw

25 Points Joined June 2011

Hi All,

I have a query .

I have taken an online course from hughes education which started last year july 2011. And i have paid the full amount of the course with service tax by jan 2012.

And now the Hughes education is asking me to pay the difference of the changed service tax (last year it was 10.30% and now its 12. 36%) . As the course is yet to complete (it will be completed by sep 2012)

As per the https://www.servicetax.gov.in/pt-of-taxtn2011.htm , the point of tax should be when payment is made and invoice is generated . For this case its jan 2012 and at that point of time it was 10.3 % and i already paid that amount.

And after giving my above justification also they are telling me to pay the amount and you can show the same to service tax dept .

Please let me know how to proceed on this , whether hughes education is correct and i need to pay the difference .

If not what action i can take against hughes education ( any how i need to pay the excess tax difference amount , as they will not release my certificates if i dont pay them )

Regards,

Bhaskar

Replies (6)

ankita Goyal

Student CA Final

113 Points Joined September 2011

yes the rate of stax will be 10.3% only

O.D.SHARMA

DGM-F & A

1734 Points Joined November 2007

Dear Bhaskar, If you have paid full invoiced amount in Jan 2012 no need to pay diff. amount.You talk to their manager in Finance/Tax or you can put this issue with ser Tax Deptt.with their Sr tax Regn No. & They cannot hold the certificate as well.They are bound to accept/ take with old ser tax rate in last FY.

FinsQ

service provider

54 Points Joined January 2010

dear,, since you paid full amount before 31march.... ST rate shud be 10.3% only.... you shud talk to manager finance or service tax consultant of that education institute...!!!

https://www.facebook.com/pages/FinsQ-Professional-Services-Private-Limited/133052586779699

Prateek Agarwal

Sr. Executive - Finance & Accounts

1732 Points Joined February 2011

Pointof taxation rules 3 (three) events of taxation.

1. Provision of service

2. Issue of invoice

3. Payment.

Any 2 of these events happening either before 31st March or after 31st March will define the point of taxation.

In your case, provision of service is yet to be completed, but issue of invoice and payment are before 31st march, hence service tax payable by you is 10.3% only.

bhaskar

sr sw

25 Points Joined June 2011

Hi All ,

Thank you for your valuable reply .

Just now i was checking for my payment reciept , but found that they have issues me only Acknowledgement for collection of amount .

And in bottom of the acknowledgement they have mentioned "This is not a final reciept but an Acknowledgement of collection of amount"

They have not issues invoice to me .

So in this case whether i need to pay the tax differences .

Regards,

Bhaskar

O.D.SHARMA

DGM-F & A

1734 Points Joined November 2007

Dear,

This is clear now,The collection slip doesn't have ser tax No & this is not invoice.They can treat it as advance & demand with a final invoice.You can pay then with prevailing rate of ser tax.