Service tax

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Dharmendra Kumar Thakur (Querist)

21 May 2015 Hi,

Pls let me update by when service tax new rate i.e. 14% is going to apply.
Further,I want to know service tax reverse charge mechanism rules for year 2015-16.

Rgds,

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

21 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

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

21 May 2015 Switch over to new rates.
To simplify:-

Rule 4 of Point of Taxation Rules change in effective rate of Service Tax:

There are three events that occur in connection with a service

A. Issue of Invoice
B.Payment received
C. Provision of Service

If any two out of the three events have occurred on/before 31st May, the old rate of 12.36% shall be applicable.

If any two out of the three events have occurred on/after 1st June, the new rate of 14% shall be applicable.

Wef June 1st:
Following effective rates for various services (in bracket present rate)

GTA transports -3.5 (3.71)
Builder-residentl -3.5 (3.09)
Builder-comrcl -4.2 (3.71)
Civil cntr wth mtrl -5.6(4.94)
Erctn/elctr wth mtrl-5.6(4.9)
repair mntnce of bldg or goods -9.8 (8.64)
Lodging -8.4 (7.42)
Restaurant -5.6 (4.9)
Catring -8.4 (7.42)
Hall wth Catring -9.8 (8.64)
vehicle rent -5.6 (4.94)

For details ,pl refer 67A..

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