Service tax

This query is : Resolved

manoj (Querist)
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01 June 2015 If the Invoice is raised in the month of May for services provided in the month of June, what would be the applicable rate of Service Tax?

Would be old rate of 12.36% be applicable as the Invoice has been raised in May or would the new service tax rate of 14% be applicable as the services have been provided in June.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 June 2015 Switch over to new rates.
To simplify:-

Rule 4 of Point of Taxation Rules change in effective rate of Service Tax:

There are three events that occur in connection with a service

A. Issue of Invoice
B.Payment received
C. Provision of Service

If any two out of the three events have occurred on/before 31st May, the old rate of 12.36% shall be applicable.

If any two out of the three events have occurred on/after 1st June, the new rate of 14% shall be applicable.