Changes in Service Tax Rate From June

We know that there are the changes made in the Service Tax Rate after the Finance bill has been passed by both the houses of  parliament and sanctioned by The President Of India.

In this article we will consider as to what rate is to be applied for Service Tax for particular instances after the changes in the rate made as on 1st June, 2015.

Changes in Service Tax Rate From June

There is a clarity about the rate to be applied but how ? Lets see how to deal with these situations :

Scenario 1 : If Service is completed before 1st June 2015 ;

Old Rate Applicable : If the payment has been made or invoice has been raised for the services provided before 1st June

New Rate Applicable : If the payment and invoice is on or after 1st June

Scenario 2 : If Service is completed after 1st June 2015 ; 

Old Rate Applicable : If the payment has been made or invoice has been raised for the services after 1st June

New Rate Applicable : If the payment and invoice is made before 1st June

Following points will provide a better clarity about the scenarios :

• If the service Provision is complete till 31.05.2015 and Invoice has been raised till 31.05.2015 but the Payment has been received on or after 01.06.2015­ the rate applicable will be the old rate i.e. 12.36%

• If the service has been completed till 31.05.2015 and Invoice has been raised on or after 01.06.2015 but Payment has been received till 31.05.2015 ­the rate applicable will be the old rate i.e. 12.36%

• If the service Provision has been complete till 31.05.2015 and Invoice has been raised on or after 01.06.2015 and the payment has also been received after 01.06.2015­ the rate applicable will be the new rate i.e. 14%

• If the invoice raised till 31.05.2015 in advance and some part of total consideration has been paid till 31.05.2015 but Service Provision is being done on or after 01.06.2015 the rate applicable will be the old rate i.e. ­12.36% for such part payment, and the new rate i.e  14% for balance to be received

• If the entire consideration has been received till 31.05.2015 but no invoice has been raised till 31.05.2015 and no service has been provided the rate applicable will be the new rate i.e. ­14%

• Even if the entire service has been provided on or after 01.06.2015 but both payment as well as invoicing has been done till 31.05.2015 then ­the rate applicable will be the old rate i.e. 12.36%

 Changes in Service Tax Rate From June

You can buy updated books on service tax from www.cakart.in