Service tax on basic rate change

Hi Mr. Mohanty,

service tax is payable on total value arrived after abatement and reverse charge provisions. if rate has been revised to 110/- from 103/- of same original contract then service tax should be paid as per 110/- only.

I am not aware of any notification or provision in such reference but there are provision for reverse situation. Under Rule 6 (3) of Service Tax Rules, 1994 it is has been mentioned that if a person raised a Invoice and after that value is reduced for mentioned reasons then assessee can take the credit of such excess service tax paid. If authority are giving credit for reduction in value how can they leave tax on increase in value.

regards

CA Vipin Jain