SERVICE TAX payable w.e.f.?

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  1. Zavery

    Zavery New Member

    Sir., I m having Motor insurance policy, which due on 6th June, 2015 and I renew before 31st May, Wt service tax rate is payable? 12.36% or 14%? Pl clarify.
    Regards. ZAVERY
  2. Karan Batra

    Karan Batra Well-Known Member

    In your case, if the Invoice is raised before 31st May and the payment is made before 31st May - then the service tax rate would be 12.36%

    If either the invoice is raised after 31st May or payment is made after 31st May - service tax would be levied @ 14%
  3. GSK

    GSK New Member

    Hi All,

    Opinion required on below scenario.

    We are in telecom services and charged advance rental for service like Leased Line.. The services is continuous in nature and disconnected when customer ask for it.

    The invoice pattern is like we bill in Mar'15 for Apr-Jun'15 period in Jun'15 for Jul'15-Sep'15 period and so on...i.e. In Mar'15 we raised bill for 300 for Apr-Jun'15

    We received communication from our tax department that as per new tax change we need to raise debit note for 2% additional service tax for Jun'15 (i.e. Debit note of Rs. 2 for Jun'15 service charge of INR 100) service period and pass on the Credit of .36% (i.e. Credit of Re. .36 to our customer for Jun'15 service period.)

    Assume customer not paid till 4 Jun'15 for invoices raised in Mar'15... Please suggest is raising Debit and Credit is right way...? I read somewhere that in case of continuous service case if invoice raised before change of tax then only older rate would be applicable and no further debit / credit...

    Please suggest.
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