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Clarification - rate of service tax, Service Tax

Issue Id: - 1598
Dated: 9-11-2009
By:- Rajesh Goel

Clarification - rate of service tax


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We are a Construction company, the main profile is to execute works contract and management, maintainence & repairs service. Now the problem is that we are giving service to one of our client in jan-09 . The payment of that service we received in oct 2009. Our client made us a gross payment with 10.3 % of service tax instead of the that time existing rate of 12.36 %. I submit all the notification,but he is not ready to under stand. Pls suggest by which case or circuler I convince our client.

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1 Dated: 16-11-2009
By:- Mukesh Kumar
Service tax rate is applicable corresponding to the period in which services have been provided. If the rate of service tax (increase / decrease) change after the date of provision of service, that can not effect the previous situation. Therefore the stand taken by your client is not warranted at all. Even if there are certain good decisions on this issue. You may find those cases in service tax case laws in this site.

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