What is the new service tax rates details

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sanjay malewar (Querist)

04 June 2015 Dear Sir/ Madam

Please give me details of 14% service rate
Like Education cess and Secondary Edu cess

Thanks and regards

Sanjay Malewar

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

04 June 2015 No education cess and Higher education cess apply on service tax with effect from 1st June 2015. so total 14% is service tax only

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

04 June 2015 Revised Service Tax Rate of 14% will be applicable from 01.06.2015. There is no breakup of 14%. Swachh Bharat Cess of 2% not applicable as of now. Refer Notification No 14/2015 Dated 19.05.2015 and department clarification from link given below, which is self explanatory:

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)

04 June 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.

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