service tax rates since 1994

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vaibhav (Querist)
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11 May 2010 dear sir

i want to know service tax rates applicable in various financial year since 1994 till now

and also threshold limit applicable in various financial year since 1994 till now

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 May 2010 Rate of Service Tax

Section 66 of Finance Act, 1994 (which is a charging section) states that there shall be levied a tax (hereinafter referred to as the service tax) at the rate of 12% of value of taxable services referred in section 65(105) of Finance Act, 1994. In addition, education cess and SAH education cess is payable. Thus, total service tax was 12.36% during. 11-5-2007 to 23-2-2009.

Service tax rate has been reduced to 10% w.e.f. 24-2-2009 vide Notification No. 8/2009-ST dated 24-2-2009. Thus, total service tax payable is 10.3% in respect of taxable services provided on or after 24-2-2009.

This tax was first time introduced with effect from 1-7-1994 on three services. The rate was 5%. It was subsequently increased to 8% w.e.f. 14-5-2003. It was enhanced to 10% w.e.f. 10-9-2004. Service tax rate was 12% plus education cess of 2% (total 12.24%) w.e.f. 18-4-2006 till 10-5-2007. It was 12.36% during 11-5-2007 to 23-2-2009.

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