Applicablity of Service tax rates

[Murari Agrawal]

Dear experts,

our event will be held in the month of June, 2015. We are collecting course fee in advance advance with existing service tax rates. Question is if the notification for enhanced service tax is issued prior to the date of event, what rate will be applicable for charges collected prior to notification date. Thanks.

AI Summary

Service Tax Rate Clarified: 12.36% Applies to Advance Fees Before June 1, 2015; 14% Thereafter per Taxation Rules. An individual inquired about the applicable service tax rate for fees collected in advance for an event scheduled in June 2015, given a potential rate change. Experts responded, clarifying that until the new rate of 14% is officially notified, the existing rate of 12.36% applies. Notifications indicated the new rate would be effective from June 1, 2015. According to the Point of Taxation Rules, if advances are received before May 31, the old rate applies; otherwise, the new rate applies. The determination of the applicable rate depends on the timing of invoice issuance and payment receipt.