service tax rate changed to 15 on 1 june 2016.
service tax rate changed to 15 on 1 june 2016.
when did service tax rate change to 15?
1 june 2016
service tax was a tax levied by the central government of india on services provided or agreed to be provided excluding services covered under negative list and considering the place of provision of services rules, 2012 and collected as per point of taxation rules, 2011 from the person liable to pay service tax. person liable to pay service tax is governed by service tax rules, 1994 he may be service provider or service receiver or any other person made so liable. it is an indirect tax wherein the service provider collects the tax on services from service receiver and pays the same to government of india. few services are presently exempt in public interest via mega exemption notification 25/2012-st as amended up to date and few services are charged service tax at abated rate as per notification no. 26/2012-st as amended up to date. presently from 1 june 2016, service tax rate has been increased to consolidated rate at 14% +0.5%+0.5%= 15% of value of services provided or to be provided. the service tax rate now is consolidated rate as education cess and secondary higher education cess are subsumed with 2% of "swach bharat cess(0.50%)" has been notified by the government.
service tax
with introduction of krishi kalyan cess at 0.5% w.e.f june 1, 2016, effective rate of service tax would eventually go up to 15%, which was earlier increased to 14% (with subsumation of education cess and secondary and higher education cess) from 12.36% w.e.f june 1, 2015 and swachh bharat cess at 0.5% on value of all taxable services imposed w.e.f november 15, 2015. krishi kalyan cess, which was announced during the 2016–17 budget, has become applicable from 1 june. a tax of 0.5% would be levied over and above the service tax and swachh bharat cess. till 31 may 2016, the service tax rate was 14.5%. with krishi kalyan cess, the service tax would increase to 15%. while swachh bharat cess was levied to conduct cleanliness drive in india, the new cess has been levied for the purpose of financing and promoting initiatives to improve agricultural growth.
service tax