Service tax revised from 12.36% to 14.00%
Dear Customer,
As you are aware the Government of India, Ministry of Finance, Department of Revenue and Tax Research Unit has revised the service tax rate to 14% from the existing 12.36%.
These changes will come in effect from 1st June 2015. We will be making the necessary changes in the forthcoming invoice.
Below is the new service tax schedule:
An example to illustrate the above table is as below:
Scenario 1:
If the services availed and invoice generation is prior 1st June ’15, but you have made the payment post 1st June ’15 then you will be charged as per the old service tax rate of 12.36%
Scenario 2:
If the services are availed after 1st June ’15, and you have been billed an advance rental prior this period and you have made payment prior 1st June ’15 then you will be charged as per the old service tax rate of 12.36%
exactllyERP is equipped with the new service tax changes. For further clarification or feedback, please feel free to call us on 913366147651 or E-mail us on support@exactlly.com
Assuring you the best solutions all the time.
Best regards,
Customer Service
exactllyERP Team
Sir,
What rate will be charged in case of Annual Maintainence Contract in which bill has already been raised for whole FY but payment will be received at year end and services are provided on monthly basis?
In your case where the payment is not yet made, the rate should be 14%.