New service tax rate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2015 We recd detail of Transaction During the month (May 15) and issued the bills to clients by adding our part+service tax (on our part) in June 15 what is the rate of ST we charge from Clients?

Also recd bills of cenvat credit @ 12.36% in June 15 of the above transactions, can we take that cenvat credit?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 June 2015 Switch over to new rates.

To simplify:- Rule 4 of Point of Taxation Rules change in effective rate of Service Tax: There are three events that occur in connection with a service

A. Issue of Invoice
B.Payment received
C. Provision of Service

If any two out of the three events have occurred on/before 31st May, the old rate of 12.36% shall be applicable.

If any two out of the three events have occurred on/after 1st June, the new rate of 14% shall be applicable.