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

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.