Rate of service tax
This query is : Resolved
01 May 2012
If serviice is provided in Mar'12 and invoice raised in Apr'12, then what is the service tax rate going to be - 10% or 12%?
01 May 2012
Dear Angshuman Roy
Actually service tax liability arises only when you received the service considaration .
And it also depends upon method of accounting you followed .
1) If you maintaning accural basis of accounting than rate of service tax will be 10 % and you had to paym service tax before 31march
2) if you are maintaining account on cash basis than your serviec tax liabity will be arise in the month of april when you actually raised the invice and received the considatation for the same .
Thanks
Actually service tax liability arises only when you received the service considaration .
And it also depends upon method of accounting you followed .
1) If you maintaning accural basis of accounting than rate of service tax will be 10 % and you had to paym service tax before 31march
2) if you are maintaining account on cash basis than your serviec tax liabity will be arise in the month of april when you actually raised the invice and received the considatation for the same .
Thanks
01 May 2012
agreed ... and edu cess and SHES will be add here.
01 May 2012
It has been 1 year now that concept of leviability of service tax has been changed from receipt of payment (previous concept) to raising of Invoice by way of Point of Taxation Rules, 2011
Liability to pay service tax arises the day bill is raised (if raised within 14 days)
As regards, to your query, As per Rule 4 of Point of Taxation Rules, 2011, in this case since invoice is raised in Apr. 12, rate of 12% will be applicable.
FOr your kind information, levy of servic e tax and applicability of rate of service tax has nothing to do with method of accounting followed by the assessee. It totally depends on actual legal position as contained in service tax law.
Liability to pay service tax arises the day bill is raised (if raised within 14 days)
As regards, to your query, As per Rule 4 of Point of Taxation Rules, 2011, in this case since invoice is raised in Apr. 12, rate of 12% will be applicable.
FOr your kind information, levy of servic e tax and applicability of rate of service tax has nothing to do with method of accounting followed by the assessee. It totally depends on actual legal position as contained in service tax law.
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07 May 2012
totally agreed with Mr.Nikhil views. One has has to update himself with changes.
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