Service tax amendments as per new budget 2015

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Sunil Pawar (Querist)

25 March 2015 Dear Sir,

I want to know as per new budget 12.36% service tax converted into 14%. My query is that when it is applicable? or which date?
it is from 01.04.2015.?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

25 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 till the new rates are notified Service Tax rate will be 12.36%

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Sunil Pawar

Sunil Pawar (Querist)

25 March 2015 Okay thanks sir. But i want to know when enactment of the finance bill,2015 ? i am working in service industries so this date is most important to know me.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

24 July 2025 Great question — especially since Service Tax rate changes impact billing, accounting, and compliance timelines significantly for service industry professionals.

✅ Budget 2015 Service Tax Rate Change Summary:
🔹 What Changed?
Old Rate: 12.36% (12% + 2% Edu Cess + 1% SHE Cess)

New Rate: 14% (flat, cess subsumed)

🔹 Key Dates:
Event Date
Union Budget Announced 28 Feb 2015
Finance Bill Passed by Parliament May 2015
New Service Tax Rate Effective From 1 June 2015

📜 Official Notification:
✔️ Notification No. 14/2015 – Service Tax, dated 19 May 2015
It clearly stated:

“...the provisions of clause 106 of the Finance Act, 2015, shall come into force on the 1st day of June, 2015.”

📝 Final Answer:
🔔 The revised Service Tax rate of 14% became applicable from 01.06.2015, not from 01.04.2015.

✅ Until 31 May 2015:
Continue charging 12.36%

✅ From 1 June 2015 onward:
Start charging 14%

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