Though the new rate of service tax of 8% came into force from 14th May, 2003 on existing 51 services, and would come

Indian Service Tax

Irregular Levy

[Para 2.9.3 of Cir.No.59/812003, dt. 20/6/2003]

Though the new rate of service tax of 8% came into force from 14th May, 2003 on existing 51 services, and would come into effect from 1st July, 2003 in case of new services and extensions of services, in certain cases service providers have reportedly collected service tax @ 8% on such services, even prior to these specified dates. In such cases, unless the amount is refunded back to service receiver, the service provider is required to deposit amount equal to such duty collected in excess of that is leviable, as per the provisions of the service tax law.