TaxTMI 
TaxTMI 
A chartered accountant firm having gross receipts more than Rs. 50 lacs is maintaining accounts on cash basis. Whether differential service tax ( 12.36% minus 10.3%) on bills raised upto 31st March, 2012 and payments received subsequently in April, May, June and July, 2012, is to be paid ??
Service tax on Previous year bills
27 Jul 2012 
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Point of taxation: payments after rate restoration require higher service tax; collection stayed for specified professional services pending litigation
For the eight specified professional services and for services under reverse charge, the point of taxation is the date of payment; payments received on or after the rate restoration date require service tax at the new rate. Suppliers may issue supplementary invoices to recover the differential and Cenvat credit is available on such supplementary invoices and tax payment challans subject to the Cenvat Credit Rules. The Delhi High Court has stayed coercive recovery of the differential demand for the eight categories pending litigation. (AI Summary)
For the eight specified professional services and for services under reverse charge, the point of taxation is the date of payment; payments received on or after the rate restoration date require service tax at the new rate. Suppliers may issue supplementary invoices to recover the differential and Cenvat credit is available on such supplementary invoices and tax payment challans subject to the Cenvat Credit Rules. The Delhi High Court has stayed coercive recovery of the differential demand for the eight categories pending litigation. (AI Summary)