A company arranged for an event in the month of March 2009 but registrations started in the month of January 2009. All the advances were received with service tax @ 12.36%.
As all of us aware the service tax rate was brought down to 10.3% effective 24th February 2009. The company is raising the invoices immediately on the closure of event (15th March) and adjusted the advances against the dues for invoices.
In this case what is the rate of service tax applicable? If it is 10.3%, can the company pass a credit note for the difference and pass on the benefit to the customers?
Regards,
R. Raman
CAclubindia
