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of <h1>Service Tax Rate to Increase from 12.36% to 14% Post Finance Bill 2015 Enactment, Education Cesses Subsumed.</h1> The circular addresses the proposed increase in the service tax rate from 12.36% (including education cesses) to 14%. The education cesses will be subsumed into the new rate, which will take effect once the Finance Bill, 2015, is enacted and the government notifies the date. Until then, the current rate and cesses remain applicable. Additionally, no changes have been made to the rules regarding the valuation of services related to food or beverage service in air-conditioned establishments, which remains at 12.36% for the specified portion. The circular emphasizes the need for wide publicity to inform stakeholders.
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