BSNL, Reliance, Vodafone are charging 14% service tax in May bills!

[x720]

11-06-2015 to 10-07-2015

[emoji14]

 

[Sushubh]

This is seriously messed up.

 

[x720]

Add Vodafone to the list too.

Heh. Makes it seem as if you're on prepaid broadband or maybe rcom's way of justifying the 14%

 

[itzmynet]

i wonder if @mhsabir can calculate this:
https://googledrive.com/host/0B7GnL1EQD2WZRTZMaVhsQ0VKM0U

i guess that is your June month bill with due date of 29th June

 

[Sushubh]

it is for the month of may. 14% service tax was applicable only after june 1. which means that any billing before june 1 still comes under 12.x% service charge.

 

[Pankaj Singhal]

Any bills raised after 1st June will have 14% tax

 

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[Sushubh]

even if the billing is for the period before june? isn't tax applicable on payments after it is implemented? :speechless:

 

[Pankaj Singhal]

No, now it is on billing basis.

 

[mhsabir]

Strangely, I did not get a notification for being tagged. Just happened to see this thread.

On topic, this is what I am reading (from online sources)

Coming to Rule 4 of the Point of Taxation Rules, 2011, it provides that applicability of service tax rate depending on timing of invoice and payment for the taxable service and they completely ignore the date on which service is provided. It provides as follows;
Where services provided prior to change in service tax rate, new rate is applicable if invoice is issued or payment is received after the change in service tax rate. Otherwise old rate is applicable.
Where services are provided after the change in service tax rate, old rate is applicable if invoice is issued or payment is received before the change in service tax rate. Otherwise new rate is applicable.

 

[mhsabir]

Nice read - Conflict between Section 67A and Point of Taxation Rules, 2011.

Change in Service Tax Rate — Section 67A vs Rule 4 of Point of Taxation Rules