Service Tax Rate

[Sanjeev Jha]

Respected Sir,

Can you please advice the applicable service tax rate from 1 may 2015.

[PAWAN KUMAR]

Dear Sir,

The rate has been proposed @14% in the budget but date of effectiveness has still not declared.

[Mahir S]

The rate of Service Tax is being increased from 12% plus Education Cesses to 14%. The ‘Education Cess’ and ‘Secondary and Higher Education Cess’ shall be subsumed in the revised rate of Service Tax. Thus, the effective increase in Service Tax rate will be from the existing rate of 12.36% (inclusive of cesses) to 14%, subsuming the cesses.

Presently, There shall be no change in the service tax rate and present rate shall remain in existence till the new rate shall be effective from a date to be notified after the enactment of the Finance Bill, 2015..

AI Summary

Service Tax Rate Update: Current 12.36% Rate Stays Until 14% Rate's Effective Date Announced in Finance Bill 2015. A query was raised regarding the applicable service tax rate from May 1, 2015. In response, it was clarified that the proposed service tax rate is 14%, as mentioned in the budget, but the effective date has not been declared. The current rate, including Education Cess and Secondary and Higher Education Cess, is 12.36%. The new rate of 14% will subsume these cesses, resulting in an effective increase. Until the Finance Bill, 2015 is enacted and a new date is notified, the existing rate will remain in effect.