Services rendered before 31st march 2012

Please refer the point of taxation rules, 2011. In case there is a change in the rate of service tax, if the service is rendered before the date of change: If the invoice has been issued as well the payment has been received after the DOC, POT shall be the date of issue \ date of receipt of payment whichever is earlier. Hence, in your case, you have raised the invoice after the date of change in rate of service tax (and I presume that you have not received the payment) Hence, the new rate shall apply (i.e. 12.36%)

The service receiver is right, you need to correct the rate @ 12.36%. Refer points of taxation rules, 2011

4. Determination of point of taxation in case of change in effective rate of  tax - Notwithstanding anything contained in rule 3, the point of taxation in cases where there is a change in effective rate of  tax in respect of a service, shall be determined in the following manner, namely:-

 

(a)     in case a taxable service has been provided before the change in effective rate of tax,-

(i)   where the invoice for the same has been issued and the payment received after the change in effective rate of  tax, the point of taxation shall be date of payment or issuing of invoice, whichever is earlier; or

 

 

thanks

Agree with the experts. You need to provide 12.36%.

kindly go through the below link.

/articles/determination-of-rate-of-service-tax-13526.asp

kindly go through the below link.

/articles/determination-of-rate-of-service-tax-13526.asp

Read the attached circular dated 8/5/2012.