Service tax rate applicabe for advance receipts

Service Tax (Legacy) 315 views 2 replies

Angayarkanni Murugesan

Central Govt

53 Points Posted on 11 July 2017

Sirs,

Kindly clarify

I have received advance of Rs.10,00,000/- alongwith Service tax of 12.36% during the year 2014 for the services to be rendered for two years from the date of receipt of advance.

I have remitted the entire Service Tax.

Now in 2014-15 Service to the value of 2,00,000 was rendered. Service tax @ 12.36% was invoiced. and adjusted against Advance

Again in 2015-16, Service to the value of 5,00,000 was rendered. Service Tax @ 14% was invoiced. Nothing was remitted to Service Tax authorities as it was adjusted against Advance.

in 2016-17 Service to the value of 1,00,000 was rendered. I have to raise the Invoice now.

Whether I have to charge Service Tax @ 14+0.5+.05?

then how can I remit the SBC & KKC? . Because when the payment was received, Education cess only was collected and remitted.

please guide me

thanks & regards,

M.Angayarkanni

Replies (2)

RAJA P M

"Do the Right Thing...!!!"

128152 Points Posted on 11 July 2017

Received advance Rs. 10 lakhs on 2014. At the time Service Tax 12.36%

The service Tax is on

2014 - 12.36%, 2014-15 - 12.36%, 2015-16 - 14% and 2016-17 - 14% + 0.5% + 0.5%.

You are Invoiced Rs. 200,000 and ST 12.36% on 2014-15

You are Invoiced Rs. 500,000 and ST 14% on 2015-16 - In Your view, You change Tax Value 12.36% to 14%. The same Way You can change 14 + 0.5 + 0.5.. You/Customer can't change the order Value. So, It,s no more effect. How to you remitt above said Tax the same remitt make as SBC & KKC