TACKLED OF NEW SERVICE TAX CHANGES APPLICABLE FROM 1st JUNE 2015
TACKLED OF NEW SERVICE TAX CHANGES APPLICABLE FROM 1st JUNE 2015
As the service tax rate 14% will be applicable from 1st June 2015 vide Notification No. 14/2015.
How change in Service Tax rate should be tackled?
Please keep in mind the following yourself and prepare accordingly
- Service Provision is complete till 05.2015 and Invoice raised till 31.05.2015 but Payment received on or after 01.06.2015-12.36% applicable
- Service complete till 05.2015, Invoice raised on or after 01.06.2015 but Payment is received till 31.05.2015 -12.36%
- Service Provision complete till 05.2015 and Invoice raised on or after 01.06.2015 and Payment also received after 01.06.2015-14%
- Invoice raised till 05.2015 in advance and some part of total consideration has been paid till 31.05.2015 but Service Provision is being done on or after 01.06.2015 -12.36% for such part payment, 14% for balance to be recd
- Entire consideration received till 05.2015 but no invoice raised till 31.05.2015 and no service provided -14%
- Even if entire service has been provided on or after 06.2015 but both payment as well as invoicing has been done till 31.05.2015 then -12.36
The simple method- there are three parameters-
- Service provided
- Payment received
- Invoice raised.
If two parameters before 1.6.2015 then old rate.If two after 1.6.2015 then new rate.
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