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Service tax query

Prashant (CA Final) (271 Points)

23 April 2012

In This Financial Budget, our Finance Minister Changed rate of service tax 10.3 % to 12.36%. SO I want to ask that from when it was applicable. i.e. from 1 April 2012 or from the next day of Budget i.e. 17 march 2012 ?
Actually I have a BSNL Broadband Connection. They charged 12.36 % service tax on the bill of march. It is wrong from my point of view, because if they follow the date on which budget declared even than they have to charged from 16 march to 31 march 2012. why they charged higher rate service tax from 1 march to 15 march ?

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6 Replies

Sanjeet Ojha (Trainee) (26 Points)
Replied 23 April 2012

This effective rate is applicable from 1st apr 2012. Anyway my bill is also raised from 25th feb to 24th march 2012 which is raised by reliance for my netconnect which has imposed service tax @ 10.3%.

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TRILOK SUREKA (CA CS student) (40 Points)
Replied 24 April 2012

Originally posted by : destiny
	In This Financial Budget, our Finance Minister Changed rate of service tax 10.3 % to 12.36%. SO I want to ask that from when it was applicable. i.e. from 1 April 2012 or from the next day of Budget i.e. 17 march 2012 ? Actually I have a BSNL Broadband Connection. They charged 12.36 % service tax on the bill of march. It is wrong from my point of view, because if they follow the date on which budget declared even than they have to charged from 16 march to 31 march 2012. why they charged higher rate service tax from 1 march to 15 march ?

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Dilip Darji (392 Points)
Replied 24 April 2012

Dear Sirs.

It appears that BSNL has raised their Invoice within 30 days from the date of completion of Service and therefore the date of issue of invoice is the point of taxation as per Rule 3(a) of Point of Taxation Rules, 2011. The date of completion of Service is 31/03/2012 and BSNL is duty bound to raise invoice till 30/04/2012. Since the rate of Service Tax is changed to 12.36 % with neffect from 01/04/2012, it appears that BSNL is right in collecting Service Tax @ 12.36 % in his invoice issued after 01/04/2012.

Regarding RELIANCE Bill, it may be that advance might have been received by Reliance and therefore 10.3 % Service Ta

Regards.

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Sonu Kumar (Account Manager) (665 Points)
Replied 24 April 2012

only Excise Duty are applicable from the next Day of Budget So Excise Duty 12.36% will be Charged from 17.03.12

But In Case of service tax it is applicable from 01.04.12,

the BSNL Raised Bill for the month of March on 20.04.12 it is more that 15 Days

So Service tax has been charged 12.36%

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Prashant (CA Final) (271 Points)
Replied 24 April 2012

Originally posted by : Sonu Kumar
	only Excise Duty are applicable from the next Day of Budget So Excise Duty 12.36% will be Charged from 17.03.12 But In Case of service tax it is applicable from 01.04.12, the BSNL Raised Bill for the month of March on 20.04.12 it is more that 15 Days So Service tax has been charged 12.36%