Clarity on service tax rate
This query is : Resolved
14 March 2015
Dear sir, The Service Tax Rate has been increased from 12.36% to 14% WEF 01-04-2015. My doubt is Wheather 14% is inclusive of Primary and Secondary Cess or We have to charge 2% & 1% on 14%.
14 March 2015
The rate is inclusive primary and secondary education cess. But the rate 14% not WEF 1-4-15 but from a date to be notified latter after passing finance bill.
15 March 2015
Please refer D.O.F. No. 334/5/2015-TRU Dated 28.02.2015 from link given below:
https://www.cbec.gov.in/ub1516/do-ltr-jstru2.pdf
In Point No. 3.3 it is clearly mentioned that "The new Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015."
So you need to wait. Till new rates are notified the existing rate of 12.36% will continue.
The rate of Service Tax is being increased from 12% plus Education Cesses to 14%. The ‘Education Cess’ and ‘Secondary and Higher Education Cess’ shall be subsumed in the revised rate of Service Tax. Thus, the effective increase in Service Tax rate will be from the existing rate of 12.36% (inclusive of cesses) to 14%, subsuming the cesses.
https://www.cbec.gov.in/ub1516/do-ltr-jstru2.pdf
In Point No. 3.3 it is clearly mentioned that "The new Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015."
So you need to wait. Till new rates are notified the existing rate of 12.36% will continue.
The rate of Service Tax is being increased from 12% plus Education Cesses to 14%. The ‘Education Cess’ and ‘Secondary and Higher Education Cess’ shall be subsumed in the revised rate of Service Tax. Thus, the effective increase in Service Tax rate will be from the existing rate of 12.36% (inclusive of cesses) to 14%, subsuming the cesses.
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