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QUERY

aayush shroff (CA Final) (37 Points)

06 October 2009

X provides services in Oct 08 when rate is say 12.36% but amount was received in Jan 08 when rate was say 10.3%. How much service tax will be paid by X and when??

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8 Replies

Satish (CA Final Student) (479 Points)
Replied 06 October 2009

X is liable to pay service tax @ 12.36%. If he is a non corporate assessee, he has to pay the same on or before 31st March. The corporate assessee is liable to pay service tax in the immediately succiding month of receipt on or before 5th day of the next month.

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Gautam Joshi (Partner) (361 Points)
Replied 07 October 2009

Hi Aayush,

Satish is all correct. Service tax levy is consumption based tax structure and to be paid to government account when you receive money from service receiver but rate applicability will be that of consumption month and not of receipt period obviously.

aayush shroff (CA Final) (37 Points)
Replied 07 October 2009

and if suppose service is provided in jan 08 when rate is 10.3% and money is received in oct 08 when rate is 12.36% then wat wuld b the amount of service tax payable by X?

Satish (CA Final Student) (479 Points)
Replied 07 October 2009

Of course service tax would be payable @ 10.3%. For best clarification, you can refer BSNL telephone bill for February 2009. You will find 2 rates in the bill irrespective of the date of bill.

aayush shroff (CA Final) (37 Points)
Replied 08 October 2009

thanx satish..........

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(Guest)

u hve to pay the service tax on the receipt of bill if u give a bill by imposing 12.36 and u recive the same amount so u hve to pay according ot 12.36%

EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 10 October 2009

Originally posted by :aayush shroff
"	X provides services in Oct 08 when rate is say 12.36% but amount was received in Jan 08 when rate was say 10.3%. How much service tax will be paid by X and when??	"

"X" SENT THE INVOICE SUPPOSE WITHIN 23 FEB 2009. "X" WILL CHARGE 12.36% TO "Y"

"Y" MAY PAY AT ANY DATE MAYBE IN THE YEAR 2010 HE HAS TO PAY 12.36%

AFTER RECEIVING THE PAYMENT "X" WILL PAY THE AMOUNT TO SERVICE TAX AUTHORITY

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 10 October 2009

Well no body knows the answer. No body knows as to what is the relevant date of assessment of Service Tax. In this year budget, the Minister has provided that rules shall be made for this. We all are waiting for the rules.