Monday, 25 May 2015

Blog 11 : Change in Rate of Tax

With effect from 1st June 2015, the service tax rate is increased to 14%

Please refer below table for easy understanding of how much tax to be chared on service.

Assumed that the invoice is issued in time


Service provided till
30th May 2015.
When Tax is 12.36%
When Tax is 14%
Rate
POT
Service Completed
Invoice Issued &
Payment Received
14%Dt. of Invoice      OR
Dt. of Payment received
Whichever is earlier
Service Completed &
Invoice Issued
Payment Received12.36%Date of Invoice Issued
Service Completed &
Payment Received
Invoice Issued12.36%Date of Payment received
Service provided from
 1st June 2015.
When Tax is 12.36%
When Tax is 14%
Rate
POT
Invoice Issued &
Payment Received
Service Completed12.36%Dt. of Invoice      OR
Dt. of Payment received
Whichever is earlier
Payment ReceivedService Completed &
Invoice Issued
14%Date of Invoice Issued
Invoice IssuedService Completed &
Payment Received
14%Date of Payment received

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