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

Point of taxation determines which service tax rate applies based on timing of advance payment and invoice issuance.
Applicability of service tax upon a rate change is determined by the Point of Taxation Rules, which fix tax liability by reference to the date of receipt of payment or date of issuing an invoice depending on whether payment, invoice issuance and provision of service occur before or after the change of rate. The controlling inquiry is when the invoice was issued and when payment was received relative to the effective date of the new rate; advances received before the rate change are subject to the pre change rate unless the point of taxation shifts under the Rules.