Service tax rate in reverse charge mechanism?

1. If service is provided, invoice is raised and payment is received in May itself, then old rate only is applicable.
2. If service is provided in May, invoice is raised and payment is made in June, then new rate is applicable

What If service is provided in May, invoice is raised in may and payment is made in June, then what rate of duty will be applicable ?

@ Lalit: It is not duty but service tax. In this case, old rate is only applicable

@ Ankit: When I answered Lalit, i totally forgot about RCM. Thanks for pointing out.

Originally posted by : Poornima Madhava
	@ Ankit: When I answered Lalit, i totally forgot about RCM. Thanks for pointing out.

You're welcome.No issues at all!!!

if two out of  three occurred before june 2015 rate -12.36%

and if two out of three occurred after may 2015 rate - 14 %

1. compeltion of services

2. invoice

3. payment

if two out of  three occurred before june 2015 rate -12.36%

and if two out of three occurred after may 2015 rate - 14 %

1. compeltion of services

2. invoice

3. payment

Very well said Ravinder, but your point holds good in general cases where service provider has to pay service tax.

However, in a reverse charge scenario, payment date shall be considered for checking the effective rate of service tax.

what if transporter is not provided invoices to service receiver till the effective date of service tax, how can payment to be made to the transporter.

Lalit, please be more specific in the query. Is your query regarding payment to transporter or applicability of service tax???

dear ankit,

My query is if transporter service provided in may month but invoice provides in june how can service receiver make payment to transporter before 31/05/2015, because new service tax rate is applicable from 1/6/15 on basis of payment to transporter.