Rate of Tax

[Harsh Jindal]

What wil be the rate of tax if services are provided before 1 july and payment is received after 1 july?

[YAGAY andSUN]

The Department has clarified this matter and tax will be 12.36%.

[JAMES PG]

But there is a stay on the extra collection of 2.06% by Delhi High Court

[YAGAY andSUN]

Yes, but on professionals like, CA, ICWA and CS.

[Harsh Jindal]

It depends on situation. There are three events in a service:
1. Date of Invoice
2. Date of receiving payment
3. Date of providing service
If, two events are held before 1 july, then the rate will be 10.30% and if the two events are held after 1 July, then the rate will be 12.36%.

[YAGAY andSUN]

Very true....

AI Summary

Understanding Service Tax Rates: Key Events Before and After July 1 Affect Applicable Rates A discussion on a forum addresses the applicable service tax rate for services provided before July 1, with payment received afterward. One participant states the tax rate is 12.36%, as clarified by the Department. Another mentions a Delhi High Court stay on an additional 2.06% for certain professionals. It is noted that the tax rate depends on the timing of three key events: the invoice date, payment receipt date, and service provision date. If two events occur before July 1, the rate is 10.30%; if after, it is 12.36%.