Applicability of the rate of tax - Immovable property

[SPIC Ltd.]

What is the applicable rate of service tax for an invoice raised in the month of March for the services rendered in February esp. in relation to renting of immovable property? Pl clarify.

[Surender Gupta]

Services rendered prior to 24-2-2009 would continue to be levied at 12%.

[Sunil K. Jain]

While endorsing the view expressed by Sh. Surinder Gupta, you may calculate the rental upto 24th feb seprately thus charging @ 12% and therafter at 10% rates lately notified.

AI Summary

Service tax rate for renting of immovable property: apportion rent across the changeover date and apply respective earlier and later rates. For renting of immovable property, services rendered before the rate-change date remain subject to the earlier rate, and services rendered after that date are subject to the newly notified lower rate. Practically, apportion the rental period across the changeover date and calculate the portion up to the changeover at the earlier rate and the portion after the changeover at the later rate, charging them separately on the invoice.