Service tax rates applicable

Queries 1845 views 3 replies

kamal sachdeva

manager accounts

29 Points Joined June 2012

If service tax invoice issued in the month of march 2012 or prior to new service tax rates applicablity and income was also taken in the privouse year 2011-2012 and service tax paid and returns filed for the same half year but payments for those pending invoices received in month of may and june 2012 what rate of service tax shall be applicable? 10.30% or 12.36%?

and how the accounting will be done? shud we recover difference amount of service tax from client if service tax is appliable 12.36%???????

Rgds

Kamal Sachdeva

Replies (3)

Chetan

Officer

112 Points Joined November 2011

Doesnt matter if payment received in the month of May or June. If invoice for the particular services is raised before 31st March 2012, then 10.30% service tax is applicable. Payment date becomes a POT only in caswe of GTA, wherein you have to pay tax on GTA to govt.

Swami Ayyappa Nuli

TAX ADVISOR & CONSULTANT AT G.S.T SUVIDH

1372 Points Joined June 2012

as per point of taxation rules

it is immaterial when you receive the amount,but you need to issue the invoice with in 14days from the completion of service,BUT ON THE DATE OF INVOICE(14DAYS) NEW RATE MAY BE APPLICABLE,STILL U NEED TO PAY ST @ 10.30%

foreg:IF U RENDER TAXABLE SERVICES IN MARCH20 AND ISSUE THE INVOICE ON APRIAL 2(WITH IN 14DAYS) WHERE THERE IS APPLICABILITY RATE IS 12.36%,STILL U NEEN NOT TO PAY 10.30%ONLY