03 January 2013
In one case involving as per agreement agreed rate of service tax is 10.3%(agreement valid up to 01.02.13)agreement has done before 01.04.12 but now service tax rate changed as per st rules to 12.36%.but here in this case they are paying service tax @10.3% only it is according to agreement they are arguing...is it correct?...at what rate service tax should be charged...we are auditing for service receiver's books...they are charging@12.36% but these people are remitting@10.3% only...so what should we suggest for them...pleae tell me
Guest
Guest
(Expert)
03 January 2013
The liability to pay service by default tax shall be on service provider. Hence if the receiver is not paying service tax @12.36% then the provider shall pay service tax @12.36% considering the difference amount as cost of provision of service.
CAclubindia
