service tax rate

[RAJESH IYER]

 

A Service provider has rendered  taxable services of Business Auxilliary service from 01.04.2008 to 30.09.2012. Now, he wants to raise supplementary invoice on 28.10.2013 for the period from 01.04.2008 to 30.09.2012, as no service tax has been paid by the service provider.

 He wants to know at which service tax rate, he has to  raise service  invoice now. As there are three type of rate during these period 12.36 percent , (from 24.02.2009 to 31.03.12  rate was 10.3 percent ) & 12.36 percent at the time of rendering service.

 Please Clarify service tax rate to be applied in view of POT Rules. Service was rendered before and after POT Rules.

 Regards

 RAJESH.N

[MANDAVILLI RAMAKRISHNA]

we are also exercising same type case

whether you have raised different bills on different dates?

if so, the rates prevailing on the date of the bill will be selected

More over, you should not be given a notice by dept. before 1.3.2013 then only

you will be eligible to issue invoice in normal course.

if you rendered different types of services rates also will be different 

basing on the nature of the service.

you can opt for threshold limit exemption if you have not collected/ raised

invoice containing service tax seaparately to the service receiver 

[Brijesh Verma]

Dear Rajesh

For the period 01.04.2008 to 30-06-2011 POT were not applicable so the rate to be applied must be the rate as applicable from time to time during that period.
On and from 01.07.2011 (when POT were compulsory for all) your case gets covered under Rule 4 and you have to judge accordingly.

AI Summary

Point of Taxation rules determine the applicable service tax rate for retrospective supplementary invoices and billing dates. For services rendered before 01 July 2011, apply the service tax rate prevailing at the time of rendering or billing because POT Rules were not applicable; from 01 July 2011 POT Rules are compulsory and Rule 4 governs determination of the tax point and applicable rate. If separate invoices were issued on different dates, use the rate prevailing on each invoice date. Practical points noted: absence of a departmental notice before 01 March 2013 affects eligibility to issue invoices in the normal course, and threshold exemption may be considered where tax was not separately collected.