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 for Goods Transport Agency Services Determined by Service Date, Not Payment Date; Sections 66, 66A A query was raised regarding the applicable rate of service tax for services rendered before the enactment of finance bills, with payments received afterward. The question was whether the applicable rate should be 10.2% or 12.24%, particularly for services under the Goods Transport Agency (GTA). The response clarified that the relevant date for determining the service tax rate is the date of service provision, not payment. Typically, the bill date is recognized unless there is proof of earlier service provision, in which case the applicable rate at that time is used. No specific circular or notification was mentioned, only sections 66 and 66A.