Service tax rate for fy 2015-16

This query is : Resolved

Thamotharan S (Querist)
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29 April 2015 Dear Experts,

What would be the New Service Tax rate?
a. 14%
b. 14+E.Cess 3%=14.42%
c. 14+Swachh cess 2% =14.28%
d. 14%+E.Cess+Swachh Cess 2%=14.70%

When it will likely to implement ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 April 2015 new rate details and effective date will be notified by the department once the finance act enacted. so till then we have to wait for the details about new rate

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 April 2015 Please refer D.O.F. No. 334/5/2015-TRU Dated 28.02.2015 from link given below:

http://www.cbec.gov.in/ub1516/do-ltr-jstru2.pdf

By the wording used which says Swachh Bharat cess @ 2% on Taxable Value of Service, rate can be 14+2=16%. But i personally feel that since cess is levied on Tax Amount it will come to 14.28%.

As advised by Ramesh Ji we should wait for the official notification for clarity in this matter.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 May 2015 Hon’ble President has given assent to Finance Bill, 2015 and now it became Finance Act (No.20)2015.

Notification for effective date regarding increase in service tax rate from 12.36% to 14% is still awaited.

Notification for effective date regarding levy of Swachh Bharat Cess of 2% also awaited.

Now Service Tax Notification in this regard is expected to be out soon.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 May 2015 Revised Service Tax Rate will be applicable from 01.06.2015.

Refer Notification No 14/2015 Dated 19.05.2015 from link given below:

https://www.caclubindia.com/forum/files/555789_20150519211107_notification.pdf

https://www.caclubindia.com/forum/files/555789_20150519213343_tru_letter.pdf