Rate of service Tax

[Manoj Sharma]

Dear Sir,

We have rental income from commercial buildings and raising advance bill annually as per agreement . suppose we  raise advance bill on 28/03/12  pertaining for the period of 'March 2012 to Feb 2013' , what would be rate of service tax 10.30% or 12.36% ?

 

Regds

 

Manoj Sharma

[YAGAY andSUN]

Rate of Tax would be 10.30% since the new rates are applicable from 01-04-2012.

AI Summary

Service tax rate applicability: advance rent billed before a new effective date is taxed at the earlier rate. An advance annual rental bill dated 28/03/2012 attracts the service tax rate in force on the billing date; the revised rate takes effect from 01/04/2012, so the earlier rate applies to that advance receipt.