Insurance premiums are collected in advance and the coverage is fon the following 1 year.
Tax rate was increased in the meantime.
Department demanded the differential tax. Tribunal held that differential tax is not payable. tax rate applicable on the date of signing of the contract is applicable.
05 March 2009
The applicability is related to rendering of services ( as this being consumption based tax). since service has not been rendered for the period March 2009.The bill can be revised by the service provider.
for the period Feb it is not ideal to revise, since it is only for 4 days which is bound to fall under disput/objection by the department.
CAclubindia
