Applicable rate as per finance bill

[Vijay Chitte]

Service render prior enactment of finance bills and payment received after enactment of finance bills. my query : which is the apppicable rate of service tax, is it 10.2% or 12.24%? My another query is we are fall under GTA service, we are not a serive provider and same as above, that service render prior and payments made after anactments of finance bills which applicable rate of service tax? is it 10.2% or 12.24%?. Pls. provide any circular/notifiaction/rules.

[Madhukar N Hiregange]

The relevant date for rate of service tax is always the date of provision of the servcies. If you are the service receiver then the date on which the servcie was provided. Normally the bill date is recognised, but if you have a proof that the servcie was provided earlier then the rate would be the rate as pplicable at the time of provding the service. No ciruclar/ notification only section 66 and 66A.

AI Summary

Service tax rate determination depends on the date of provision of service; bill date usually controls, subject to proof. The applicable service tax rate is the rate in force on the date the service was provided; for service receivers the bill date is ordinarily treated as the date of provision, but documentary proof of earlier provision will establish the earlier rate. This rule applies equally to goods transport agency services rendered before a rate change with payment made afterward. No specific circular was provided; reliance is on the statutory provision defining taxable services.