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2013 (1) TMI 434 - HC - Service TaxService tax rate - chargeable @ 5% or @8% - services provided prior to 14.05.2003 in respect of which payments were received on or after 14.05.2003 - Held that:- In the present case, the relevant period is April, 2003 to September, 2003 therefore, none of the above provisions of Rule 5B of the Service Tax Rules, 1994 will apply as same came into effect on 01.04.2011. Moreover, even Rule 4(a)(i) of the Point of Taxation Rules 2011 is not applicable because those Rules came into effect on 01.03.2011. The taxable event as per the Finance Act, 1994 is the providing of the taxable service. In the present case, as found that not only were the services admittedly provided prior of 14.05.2003 but also the bills have been raised prior to 14.05.2003. The only thing that happened after 14.05.2003 was that the payments were received after that date. That, would not change the date on which the taxable event had taken place. Since the taxable event in the present case took place prior to 14.05.2003, the rate of tax applicable prior to that date would be the one that would apply, thus the rate of 5% and not the rate of 8%.
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