applicability of service tax

ANURAG MAHESHWARI (SERVICE) (43 Points)

16 January 2008  

AT THE TIME OF PAYMENT OF ADVANCE TO THE PARTY FOR PROVIDING SOME SERVICE THE RATE OF SERVICE TAX WAS 10 %. BUT AT THE TIME OF PROVIDING THE SERVICE THE RATE OF TAX WAS 12%. SO AT WHICH RATE SERVICE TAX WAS PAYABLE TO THE PARTY?

SINCE THE PRICE WAS INCLUSIVE OF SERVICE TAX, THE PARTY ALREADY DEPOSITTHE SERVICE TAX ON ADVANCE RECEIVED @ 10%.