12% Service Tax for Payment received After 1.4.2012 – High Court Stays
AS per Circular No. 158/9/2012 – ST dated 08.05.2012, "in case of such 8 specified services provided by individuals or proprietary firms or partnership firms and in case of services wherein tax is required to be paid on reverse charge by the service receiver, if the payment is received or made, as the case maybe, on or after 1st April 2012, the service tax needs to be paid @12%.
The invoices issued before 1st April 2012 may reflect the previous rate of tax (10% and cess). In case of need, supplementary invoices may be issued to reflect the new rate of tax (12% and cess) and recover the differential amount".
This has been challenged in the Delhi High Court by the Delhi Chartered Accountants Society and we are informed by an advocate that the High Court has stayed (the coercive recovery of) the differential demand of service tax of 2% on services provided and invoices issued prior to 01.04.2012 by all the 8 categories of professionals including Chartered Accountants.
Please see