Service tax on taxable portion in respect of transportation service by vessels:

         • Taxable portion in respect of transport of goods by vessel to be reduced from 50% to 40%. Effective service tax will decrease from the present 6.18% to 4.944%. This will come into force from 1st October 2014.

Taxable portion reduction for vessel transportation lowers effective service tax under Finance Bill, altering levy calculation. Reduction of the taxable portion for transportation of goods by vessel from fifty percent to forty percent under the Finance (No. 2) Bill, 2014 decreases the effective service tax by lowering the taxable component used in the statutory levy calculation for maritime transport, with the change to commence on the Bill's stated effective date.