TaxTMI 
TaxTMI 
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.
Applicability of the rate of tax - Immovable property
27 Feb 2009 
2 Replies 
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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. (AI Summary)
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. (AI Summary)