Difference of service tax payment as the difference in service tax rate

[R K Verma]

My client is the business of Providing Coaching Business and has been received the fee in advance for full year. My client has already deposited the service tax on all fee received on receipt basis @ 10.2 %. Now my Querry is :- wheather service tax for differance in rate (12.24- 10.2) will be payable on value of services from the intactment of bill ?

[Surender Gupta]

No, differential service tax rate is not applicable in your case.

AI Summary

Service Tax Rate Change Not Applicable to Prepaid Coaching Fees; No Additional Tax Required for Rate Increase A client in the coaching business received advance fees for a full year and paid service tax at a rate of 10.2% on a receipt basis. The query raised was whether the client needs to pay the difference in service tax due to a rate change from 10.2% to 12.24% on the value of services after enactment of the bill. The response clarified that the differential service tax rate is not applicable in this case.