17 July 2014
In service tax, if assessee charged wrong service tax rate, for example, assessee (service provider) charged 12.36% service tax at beginning of financial year and during the financial year he came to known that he falls under rule 2(1)(d)reverse charge and having a abatement of 30% in work contract. my question is can he change the rate from 12.36% to 4.326% between the financial year?
18 July 2014
He can change the rate when he comes to know. But, to pay 8.034% is your liability. You required to pay with interest. You can recover 12.36% paid to service provider for earlier months.
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