New Service Tax Rate

[SURYAKANT MITHBAVKAR]

Please let us know effective date of new service tax rate i.e. @14%.

If it is not passed in parliament can we issue service tax invoice @12.36%.

Further if it is passed in parliament in later with effect from 01.04.15 then how we will recovered that difference from our customers.

Please guide us.

[Ganeshan Kalyani]

The CBEC has clarified with notification that the new rate of Service tax would come into effect from the date to be notified. Till such time the existing rate of service tax has be applied. Further, it depends whether the new rate will be prospective or retrospective.

regards,

ganeshan

[Tax Baniya]

Do not issue service tax @ 14%, issue service tax invoice @12.36% till the date government not notified.

Click here to know in detailed provision Amendment in service tax rate

[DR.MARIAPPAN GOVINDARAJAN]

Yes, I agree with the advice of the experts.

AI Summary

Service tax rate change: continue charging the current notified rate until the government specifies the effective date and effect.
The effective date of the new service tax rate will be the date specified in an official notification; until such notification taxpayers must apply the existing notified rate on invoices. Whether the new rate is applied prospectively or retrospectively will determine if suppliers can recover any difference from customers; advisers recommend not charging the proposed higher rate until the government notifies the effective date.