Anoop (Service) (345 Points)
30 March 2009I am working in a co. and our transporter raised bill on 28.2.09 for transportation charges in which G.Rs. attached for Feb.09. I want to know about the applicability of service tax i.e. 12% or 10% because the bill date is after 24th and service availed before 24th of Feb.09 also. Pls. also inform what is the basis of new service tax rate is applicable whether invoice date or the period in which services availed?
Thanks in advance.
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 30 March 2009
No body knows. Charge 12.36% & take credit.
Sonu Verma
(Internal Auditor)
(34 Points)
Replied 31 March 2009
Hi, As per ur question Service Tax rate will be 10% not 12%.....As Bill Raised on or after 24.02.09....No matter whether Service availed before.
Anoop
(Service)
(345 Points)
Replied 31 March 2009
| Originally posted by :Sonu Verma | ||
| " | Hi, As per ur question Service Tax rate will be 10% not 12%.....As Bill Raised on or after 24.02.09....No matter whether Service availed before. | " |
Still I am not clear whether we should pass bill of transporter for 12% or 10%. For your information, our co. do not charge service tax since we are exempt (Rs.10 lacs) so no question to get credit of service tax, it is our expense hence we are more worry about it.
Dear Rajest, I like u so much since you have replied with your valuable input on service tax critical issues so I also want your views in this regard? Your valuable input will help us to take appropriate decision.
I hope I will get concrete input from my dear friends.
Thanks in advance.
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 31 March 2009
Service Tax law is not clear as to what is a relevant date for assessment of tax (for example relevant date in central Excise when goods leave factory, relevant date in custom is date of filing bill of entry, relevant date in income tax is 1st of April). Such dates tell us as to what rate, value, notification is to be applied for assesment of Tax.
There is no such relevant date in Service Tax. No body knows that whether it is date of contract or date of actual provision of service or date of invoice or date of payment. That is why I said, No body knows.
No the problem is between 12% and 10%. If you pay 10%, department will harass you saying irrelevant things. That is why I adviced my clients to pay 12% and take credit.
Even if you are not taking credit, if the amount is not large, you can pay 12%.
Anoop
(Service)
(345 Points)
Replied 31 March 2009
| Originally posted by :Rajesh Kumar | ||
| " | Service Tax law is not clear as to what is a relevant date for assessment of tax (for example relevant date in central Excise when goods leave factory, relevant date in custom is date of filing bill of entry, relevant date in income tax is 1st of April). Such dates tell us as to what rate, value, notification is to be applied for assesment of Tax. There is no such relevant date in Service Tax. No body knows that whether it is date of contract or date of actual provision of service or date of invoice or date of payment. That is why I said, No body knows. No the problem is between 12% and 10%. If you pay 10%, department will harass you saying irrelevant things. That is why I adviced my clients to pay 12% and take credit. Even if you are not taking credit, if the amount is not large, you can pay 12%. |
" |
Thanks.
Pavan Jain S
(Chartered Accountant)
(1575 Points)
Replied 31 March 2009
Notification 8/2009 is very much clear on this issue. Since the service is provided prior to 24.2.2009, rate of 12% will be levied. For the purpsoes of levy of ST, it is the time of provision of service that has to be considered and not the date of bill. The point of collection is on realisation but the point of levy is based oin service provided
Anoop
(Service)
(345 Points)
Replied 31 March 2009
| Originally posted by :Pavan Jain S | ||
| " | Notification 8/2009 is very much clear on this issue. Since the service is provided prior to 24.2.2009, rate of 12% will be levied. For the purpsoes of levy of ST, it is the time of provision of service that has to be considered and not the date of bill. The point of collection is on realisation but the point of levy is based oin service provided | " |
Thanks. It means we should emphasize to make 2 bills (i.e. prior to 24.2.09 and after 24.2.09), is it right?
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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