Service tax on due basis or payment basis

Hi!

Please tell me if invoice dated on 04.04.12 and it is charges service tax @ 12.36%, but the descripttion of invoice says that transaction pertains to the period of March 2012. So the invoice has rightly charged service tax @ 12.36% or it should be charged at 10.3%

Thanks & Warm Regards

 

Replies (2)

Its correct, if invoice is dated 04.04.12, Service tax will be applicable @ 12.36%, even if service pertains to preceding year.

If the income is shown in the Second Half yearly return as march income, then you need pay only 10.3%.  In the point of taxation rules, there are some exemption available for individuals and firms for some specific services.  They can pay on receipt base instead of accrual.  See the latest notification in this regard.  For others if the invoice date is april 12, then service tax is leviable @ 12.36%.

 

rengaraj .r.k

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