TaxTMI 
TaxTMI 
Which rate will be applicable on advance payment received along with 12% service tax for services which are rendered either on 24.02.09 or will be rendendered after 24.02.09? Will it be 10% or 12%?
Applicability of the rate of tax
26 Feb 2009 
2 Replies 
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Service tax rate applies as on date of service, so advances for services after the rate change attract the lower rate.
The applicable service tax rate is determined by the date the service is rendered rather than the date of invoice or advance receipt; therefore advances received for services rendered on or after the effective date of a lower rate are taxable at that lower rate. (AI Summary)
The applicable service tax rate is determined by the date the service is rendered rather than the date of invoice or advance receipt; therefore advances received for services rendered on or after the effective date of a lower rate are taxable at that lower rate. (AI Summary)