Service tax rate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 Please tell me that if advance is taken for performance of some services and service tax is collected @ 10% during F/Y 2011-12 and deposit the same and services are invoiced during F/Y 2012-13(inclusive of service tax)@ 12% as applicable which results in loss of revenue 2%.

My query is- is there is any clarification for it in the upcoming and amended Service Tax Rules.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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05 April 2012 You will have to recover the difference amount of service tax from the cliet and py to the Govt.

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 But if the client denied to pay the additional amount. Basically my query is for Tourism Industry where Amount for packages are pre-decided and we cannot charged excess amount from the clients.

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Querist : Anonymous

Querist : Anonymous (Querist)

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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05 April 2012 If you have provided service before 01/04/2012 then erlier rate of 10.30% will be charged.
In that case invoice date is not important.

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 No sir, services are provided after 1/4/2012

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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05 April 2012 But budget is passed in parliament on 16th march, and rate was announced to be changed to 12.36% then how come you have not collected extra amount??
You could have collected extra amount before providing services easily.