As per the new notification dated May 19, 2015 vide D.O.F. no. 334/5/2015-TRU from service tax department, new service tax rate @14% is to be charged from the clients.
For this purpose, there are three following aspects to consider:
1. Date of receipt of amount against the services provided or to be provided.
2. Date of provision of services.
3. Date of Invoice.
For any invoice to be raised or amount received after June 01, 2015, please note that if any two of the above three fall before May 31st 2015, then service tax rate will be @12.36% else it MUST be charged @14%.
(1). Service Provision is complete till 31.05.2015 and Invoice raised till 31.05.2015 but Payment received on or after 01.06.2015- 12.36%
(2). Service complete till 31.05.2015, Invoice raised on or after 01.06.2015 but Payment is received till 31.05.2015 – 12.36%
(3). Service Provision complete till 31.05.2015 and Invoice raised on or after 01.06.2015 and Payment also received after 01.06.2015- 14%
(4). Invoice raised till 31.05.2015 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 recorded.
(5). Entire consideration received till 31.05.2015 but no invoice raised till 31.05.2015 and no service provided -14%
(6). Even if entire service has been provided on or after 01.06.2015 but both payment as well as invoicing has been done till 31.05.2015 then -12.36%
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