Applicability of 10%

This query is : Resolved

Sanjay (Querist)
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11 March 2009 My client is a Commission Agent for the manufacturing company, he only receives the commission after getting claring the payments from the customers. The manufacturing company raise the invoices to his customers and gets the payments after the credit period (say 45 days). The commission agent raise his bill only after clearing the payments by the cusomter to his manufacturing company. My doubt is, for the invoices raised during the month of Jan-09, the commission agent raise the bill only during Mar-09, what is the service tax rate applicable, is it 12% or 10%

C A GROUP COACHING

C A GROUP COACHING (Expert)
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11 March 2009 Billing shud be done in break up period. upto 24th Feb 09 12% & there after 10%
As per law No other Option in my opinion

Sanjay

Sanjay (Querist)
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11 March 2009 Thank you C.Ambani.

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CA Ravi Kumar Murugesh

CA Ravi Kumar Murugesh (Expert)
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11 March 2009 please note that new service tax rate is applicable on the basis "DATE OF PROVISION OF SERVICE".
In your case, for the services rendered by your client on or after 24.2.09 should be raised with 10.30% only.