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Service Tax query

Jigar Shah (Student) (39 Points)

03 March 2009

With reference to the reduction in rate of service tax wef 24/02/2009, what would be the implication on the following: A person has paid fees in advance on 20/02/2009 for services to be received in say April. The person has paid service tax @ 12.36% but the rate applicable at the time of rendering of service would be 10.3%. So can he claim refund of the excess service tax paid? The service provider has still not paid the service tax to the credit of the central government.Pls advise.

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Mohammed Shahnawaz (Accountant) (23 Points)
Replied 05 March 2009

Jignesh , he cannot claim a refund as Service tax is will be attracted for money received in advace or serice rendered ( which ever is earlier ) . In this case he cannot get refund and he will be attracted with 12.36% for the advance paid amount only .

Originally posted by :Jigar Shah
"	With reference to the reduction in rate of service tax wef 24/02/2009, what would be the implication on the following: A person has paid fees in advance on 20/02/2009 for services to be received in say April. The person has paid service tax @ 12.36% but the rate applicable at the time of rendering of service would be 10.3%. So can he claim refund of the excess service tax paid? The service provider has still not paid the service tax to the credit of the central government.Pls advise.	"