Service tax rate

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249 Points Joined January 2011

 

 

Dear Friends, kindly calrify my doubt on the following case.

Mr.X doing a Consulting engineer services (Proprietorship Concern) and he received a draft work order from a Company say ABC Ltd for Rs.110300 (incl.ST @ 10.3%).In the work order, the Company has mentioned Date on which services started was 29.03.2012.

First question is since the work order issued by the Company, should Mr.X needs to issue the invoice separately for the amount what the company has mentioned?

Second question is whether the service tax @ 10.3% is correct or 12.36% to be levied?

Third question is, if Mr.X received payment after 01.04.2012, what is the Service tax rate applicable?

 

regards,

Mukund.

 

 

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On 31 March 2012 at 11:57 Report
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79 Points Joined February 2011

For the Purpose of service Tax, Invoice or Payment Whichever is earlier should be considered.

As far as the rates are concerned, date of invoice or date of payment should be checked.

hence, if no invoice has been issued or payment hasnot been received service tax should be charged @ 12.36 %

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On 31 March 2012 at 13:01
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249 Points Joined January 2011

Hi Patel thnx for ur reply..But for Consulting Engineering Services the Service provider can pay the Service tax based on receipt basis not on accrual basis. Here in this case, X has not raised any invoices. 

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On 01 April 2012 at 09:37
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79 Points Joined February 2011

Here as Mr. X has not received any payment yet hence in my opinion S.T. @ 12.36%.

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On 01 April 2012 at 09:51


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