Point of taxation when there is rate change in Service Tax

With reference to first sentence of the Article, my humble view is that in Central Excise, the 'taxable event' is manufacturing of goods; however payment of duty is postponed till clearance of goods. If there was a levy of CE duty at the time of manufacture but the rate has been changed at the time of clearance, the rate prevailing at the time of clearance will apply. If there was no levy of duty at the time of manufacture, but duty has been imposed before clearance, no duty is payable on such goods.

In service tax, the taxable event is provision of service. For determination of rate of service tax, provisions of Section 67A and PoT Rules are applicable. There is some conflict between these Section and Rules, for which a lot of discussion is available including discussion at:

http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=23874

The views expressed are personal views.

Shvetal Parikh 05/07/2015