Service tax bifurcation for 14%

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Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2015 can i know what is service tax bifurcation for 14% ??

Service Tax = ?
Education cess = ?
Secondary education cess = ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 March 2015 In the budget it is consolidated rate. so still segregation between tax & cess need to be notified by the department

while making the effective date, the department will intimate the same

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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31 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. 3.1 it is clearly mentioned that "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.

In Point No. 3.3 it is also 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."

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