Service tax new rate

This query is : Resolved

Prashant (Querist)
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23 April 2012 In This Financial Budget, our Finance Minister Changed rate of service tax 10.3 % to 12.36%. SO I want to ask that from when it was applicable. i.e. from 1 April 2012 or from the next day of Budget i.e. 17 march 2012 ?
Actually I have a BSNL Broadband Connection. They charged 12.36 % service tax on the bill of march. It is wrong from my point of view, because if they follow the date on which budget declared even than they have to charged from 16 march to 31 march 2012. why they charged higher rate service tax from 1 march to 15 march ?

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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23 April 2012 Change in Rate is effective from 01.04.2012 as per Notification No. 2/2012 dated 17.03.2012.

As regards, charing rate of 12.36% I understand that even though service was provided in March 2012 but Bill for the same was raised in April 2012. As per Point of Taxation Rule 4, in those case where service is provided before change in effective rate of tax but invoice is raised after such change then rate of 12.36 will apply.

SO I think they have charged correctly assuming bill raised in April. But if bill was raised before 01.014.2012 then rate of 10% will be applicable