Service tax amendments as per new budget 2015
This query is : Resolved
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.?
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.?
25 March 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
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%
http://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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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.
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%
✅ 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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