applicable rate
This query is : Resolved
Guest
Guest
(Querist)
10 April 2009
Hello everyone
My query is regarding applicable rate of service tax.Suppose advance payment for a service is received in january 2009 at 12% and the same is paid to goverment.service is yet to be rendered in march 2009.What should be applicable rate?10% or 12%
As per my opinion and case of reliance industries ltd-2008 it should be 10
% as the point of levy is at time of rendering of services.please help.
My query is regarding applicable rate of service tax.Suppose advance payment for a service is received in january 2009 at 12% and the same is paid to goverment.service is yet to be rendered in march 2009.What should be applicable rate?10% or 12%
As per my opinion and case of reliance industries ltd-2008 it should be 10
% as the point of levy is at time of rendering of services.please help.
10 April 2009
service tax besicly on payment basis so if you have paid service tax @ rate applicable at that time then its ok. if you are issuing or receiveing bill in march or april rate will be 10%
Guest
Guest
(Querist)
11 April 2009
Sir
As per my opinion we must see rate at the time of point of levy.ans as said in the case of reliance industries ltd.2008 that there is no specific provision in the service tax to decide about the rate and in absence of such specific provision the rate at the time of rendering of services is to be seen and therefore irrespective of the fact when payment is received point of levy should be seen to ascertain the applicable rate.l
As per my opinion we must see rate at the time of point of levy.ans as said in the case of reliance industries ltd.2008 that there is no specific provision in the service tax to decide about the rate and in absence of such specific provision the rate at the time of rendering of services is to be seen and therefore irrespective of the fact when payment is received point of levy should be seen to ascertain the applicable rate.l
11 April 2009
ACTUALLY RATE PREVAILING AT THE TIME OF RENDERING SERVICES SHALL THE RATE TO BE APPLIED. IN UR CASE SINCE U HAVE RECD. THE PAYMENT IN ADVANCE AND REMITTED TO GOVT. AND IF THE REMIANING PAYMENT IS YET TO BE RECD. THAN THE EXCESS PAYMENT OF S.T. SHALL BE ADJUSTED AGAINST THE PAYABLE.
Guest
Guest
(Querist)
13 April 2009
Actually if it is correct that rate has to be seen of the date of rendering of services then in the example quoted above refunds should be given of 2 % subject to the doctrine of unjust enrichment.Isn't it?
15 April 2009
The levy is attracted at the time of receiving the advacne due to the ST payments being on services provided or to be provided in future.
The Rules prescribe that within 14 days of the same an invoice for the advacne be raised.
In my view there is no doubt that the rate of service tax would have to 12.36% ONLY.
Once the advacne is over then the balance of the billing ( beyond the advacne amount) would be @10.3%.
The Rules prescribe that within 14 days of the same an invoice for the advacne be raised.
In my view there is no doubt that the rate of service tax would have to 12.36% ONLY.
Once the advacne is over then the balance of the billing ( beyond the advacne amount) would be @10.3%.
Guest
Guest
(Querist)
18 April 2009
But sir then what about decision in the case of reliance industries ltd 2008 in that it was stated that there is no specific provision for deciding the rate so it should be seen at the time of levy and levy is attracted only at the time of rendering of services.
18 April 2009
To avail 10% service tax you will need to give a credit note for the difference of tax to the client. And whatever you have paid can be treated as advance in view of the change post receipt of payment and deposit to the government treasury.
You will also need to justify that service has been rendered in March and not in January.
You will also need to justify that service has been rendered in March and not in January.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Should I report my US salary for January, February, March in Schedule FA?
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
