Invoice raised in May, services provided in June - Service Tax Rate?

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  1. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    @Neha Agarwal,
    The explanation which you had been given is related to..
    The service which is taxed for the first time by notification in the official gazette..,while earlier it is exempted(or) covered under the negative list regime,
    Applicability of new rate or old rate depends on the rules which were explained by karan Batra sir only.
     
  2. growth

    growth New Member

    what bullshit you are spreading. this thing you should have mentioned beforehand before misguiding everybody that any invoice raised in may and payment received in june will be taxable at 14%, irrespective of when the service has been provided. this is what your first post interprets.
    Most people in practical life only raise invoice after service is provided. They will always be taxed at 12.36% if they had raised the invoice before june 1st.
     
  3. fakhrealamkhan

    fakhrealamkhan New Member

    Dear Sir You Got Two Type Answer this is confusion answer
     
  4. gagsarora

    gagsarora New Member

    Dear Sir
    I m travel Agent deals in air tkts(sub agent) , railway tkts(sub agent) or also tour operator.. i want to know that in travel category service tax number required on gross income of 10 lk + or on gross turnover (invoice billing).

    if service tax applicable... then we have to collect GST only on service charge or whole value..

    please give me correct guidance.
    thanks
    gagan
    +91-8699077717
     
  5. Neha Agarwal

    Neha Agarwal Member

    Manphooltilewa, If invoice is issued with in 14 days from the date of completion of service date(which you provided in May) service tax will be applicable @ 12.36% but If you delay even a single day. Like service provided date is 31st May & invoice is issued on or after 15th June15. Service tax will be applicable @ 14%............
     
  6. Neha Agarwal

    Neha Agarwal Member

    If invoice is issued with in 14 days from the date of completion of service, service tax will be applicable @ 12.36% but if invoice issued after 14 from the completion of service date like service is provided is on 31thMay & Invoice is issued on or after 15th June, service tax will be applicable @ 14%.
    Thanks
     
  7. Sumit Agarwal

    Sumit Agarwal Active Member

    Neha your concept of 14 days is for new service added in service tax regime as per POT rule. For change in effective rate following simple rule is there:
    There are 3 parameters
    1-Service provided, 2-Payment received, 3-Invoice raised.
    If any two parameters before 1.6.15 then old rate. If after 1.6.15 then new rate.
     
    sai tejesh(ca.final) likes this.
  8. Sumit Agarwal

    Sumit Agarwal Active Member

    The 14 days concept is not from issue of invoice it is from date of applicability of service under taxability for the first time.
     
  9. gagsarora

    gagsarora New Member


    we provide services like AIR TICKETS (BUY FROM IATA AGENT) , RAILWAY TICKETS , BUS TICKETS , BOOK HOTELS DIRECT OR INDIRECT(FROM SUPPLIERS) , TOURS.

    NOW I WANT TO CLEAR BELOW POINTS...

    1. OUR TOTAL PURCHASED SERVICES / INVOICE CROSS 10 LAKH. WE ARE ELIGIBLE FOR SERVICE TAX NUMBER???
    2. IF YES , WE BOUGHT A AIR TICKET FROM IATA AGENT(PURCHASE INVOICE ATTACHED WITH THIS MAIL)
    ACTUALLY TICKET COST IS 6609/-
    IATA AGENT GIVES US DISCOUNT/COMMISSION 345/- AND DEDUCT TDS 34.5(10%) AND CHARGE SERVICE TAX 42.64(12.36%)
    THE NET PAYABLE IS : 6342/-
    AND WE SELL THIS TICKET WITH 100/- SERVICE CHARGE i.e 6342+100=6442/-
    THEN HOW CAN I CHARGE SERVICE TAX.. ONLY ON RS 100/-(S.C) OR 100+34.5(TDS) ???
    3. IF WE ARE ELIGIBLE IN ST CATEGORY THEN IN WHICH CATEGORY WE HAVE TO REG.

    PLEASE REVERT US WITH ACCURATE DETAILS
     
  10. Neha Agarwal

    Neha Agarwal Member

    Sumit ji......That was written mistakenly. You are right......14 days will be calculated from the date of applicability of new service tax rate.
     
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