Service Tax Rate Increased from 12.36% to 14 % w.e.f. 01.06.2015

Share
Post enactment of Finance Act’15, trade was waiting
for the Finance Ministry to notify the date for enhancement of service tax.
Finally, the same has been notified as 1st June’15. Following
is the gist of changes applicable w.e.f. the said date:


1) Abolition of EC & SHEC and effective rate of
service tax to be enhanced from 12.36% to 14% (date of levy of the swachh
bharat cess yet to be notified); Notification
No. 14/2015-ST dated 19th May, 2015
2) Rule 6(3) of CENVAT Credit Rules (i.e.
non-maintenance of separate books of accounts) has been triggered with. Now,
reversal of CENVAT under the said sub-rule shall be 6% of exempted goods plus
7% of exempted services. Earlier, it was 6% for both(exempted goods as well as
exempted services);
3) Changes in rate of Air travel agent, tax by
insurers, Money changer agent, lottery distributor, etc. Notification No. 15/2015-ST
A. For Air Travel Agent under Rule 6
(7) of Service Tax Rules, 1994
On Basic Fare
New Rate w.e.f 01.06.2015
Old Rate
For Domestic Booking
0.70%
0.60% 
For International Booking
1.4%.
1.2%. 
B. For Life Insurance under Rule
6(7A)(ii) of Service Tax Rules, 1994
Gross Amount of Premium Charged
New Rate w.e.f. 01.06.2015
Old Rate
1st year
3.50%
3%
Subsequent Years
1.75%
1.50%
For Money Changing under Rule 6(7B)
of Service Tax Rules, 1994
Gross Amount of Currency Exchanged
New Rate w.e.f. 01.06.2015
Old Rate
Up to Rs. 1,00,000
0.14% subject to minimum of Rs. 35
0.12% subject to minimum of Rs. 30
For an amount exceeding Rs. 1,00,000 and up to Rs.
10,00,000
Rs. 140 and 0.07%
Rs. 120 and 0.06%
For an amount exceeding Rs. 10,00,000
Rs. 770 and 0.014% subject to maximum of Rs. 7,000
Rs. 660 and 0.012% subject to maximum of Rs. 6,000
D. For
Distributor or Selling Agent of Lotteries under Rule 6(7C) of Service Tax
Rules, 1994
Guaranteed Prize Payout
New Rate w.e.f. 01.06.2015
Old Rate
More than 80%
Rs. 8,200/- on every Rs. 10 Lakh (or part of Rs.
10 Lakh) of aggregate face value of lottery tickets printed by the
organising State for a   draw
Rs. 7,000/- on every Rs. 10 Lakh (or part of Rs.
10 Lakh) of aggregate face value of lottery tickets printed by the
organising State for a   draw
Less than 80%
Rs. 12,800/- on every Rs. 10 Lakh (or part of Rs.
10 Lakh) of aggregate face value of lottery tickets printed by the
organising State for a   draw
Rs. 11,000/- on every Rs. 10 Lakh (or part of Rs.
10 Lakh) of aggregate face value of lottery tickets printed by the
organising State for a   draw
4) Exemption of service tax on entry in recognized
sporting event, circus, cinematographic film,award function (wherein entry fees
is upto Rs. 500/person), etc.
5) Levy of service tax on job work processes for
production of alcoholic liquor for human consumption;
It is pertinent to mention that no date has been
notified for levying service tax on all services by govt. (as enacted in
Finance Act’15). The same shall be notified in due course of time.Presently,
only support services by govt. are in the ambit of service tax.
Read Notification 
Dt.19-05-2015
SERVICE TAX
RATE CHART FROM 01.07.1994 to Date
Period
BASIC RATE %
S.T.
HEC
Effective Rate
01/07/1994 to 13/05/2003
5
5.00%
14/05/2003 to 09/09/2004
8
8.00%
10/09/2004 to 17/04/2006
10
2
12.00%
18/04/2006 to 10/05/2007
12
2
12.24%
11/05/2007 to 23/02/2009
12
2
1
12.36%
24/02/2009 to 31/03/2012
10
2
1
10.30%
01/04/2012 to 31.05.2015
12
2
1
12.36%
01.06. 2015
14
14.00%

RECOMMENDED READ  VAT NOT LEVIABLE ON THE PORTION WHICH ATTRACTS SERVICE TAX

Leave a Reply

Written by

Optimization WordPress Plugins & Solutions by W3 EDGE
%d bloggers like this: