Appropriate rate of service tax to be applied

[Guest]

WE are engaged in port services where services are provided for corgo handling and storages. The practice followed for raisng the invoices are 1)Invoives raised in advance on first day of month comprising the services for that month 2)Invoices raised at the end of month on the services provided for that month Query: What rate of service tax to be applied in the above cases of invoicing in the month of April'2006 Should we raise seperated invoices for the period 1.4.06 to 17.4.06 (10.2%) and 18.4.06 to 30.4.06 (12.24%) Or

[Surender Gupta]

If your services are not composite, you may raise two separate invoices for the period mentioned in the query for different rate purposes.

AI Summary

Service tax rate change: invoice period determines applicable rate; separate invoices allowed where services are not composite. Where the supplier's supplies are not composite, the supplier may issue separate invoices corresponding to distinct subperiods within the month so that the tax rate applicable to each subperiod is charged, permitting differing rates on invoices for earlier and later portions of the month.