Change in Service Tax rate

[Admin TMI]

Question - Is there any change in rate of service tax proposed in Finance Bill 2015 ?

AI Summary

Service Tax Rate to Rise from 12.36% to 14% with Cesses Subsumed; Effective Date Pending Government Announcement. The discussion addresses a query about changes in the Service Tax rate proposed in the Finance Bill 2015. The response clarifies that the Service Tax rate will increase from 12% plus Education Cesses to 14%, with the cesses being subsumed into the new rate. This results in an effective rate change from 12.36% to 14%. The new rate will take effect on a date to be announced by the Central Government after the Finance Bill's enactment. Until then, the existing cesses will continue to be applied.