Press Information Bureau

Government of India

Ministry of Finance

16-March-2012 13:54 IST

Service Tax Rate Raised from 10 Per Cent to 12 Per Cent

The Service tax rate has been marginally raised from 10 per cent to 12 per cent. Presenting the Union Budget 2012-13 in LokSabha today, the Union Finance Minister ShriPranab Mukherjee said that to maintain a healthy fiscal situation, the Government has raised the service tax with consequential changes in rates from services that have individual tax rates. Shri Mukherjee said that this is expected to yield an additional revenue of Rs. 18,600 crore.Meanwhile, the share of services in GDP has increased to 59 per cent, the Minister added.

DSM/MG/RS/42

Service tax rate increase implemented to strengthen fiscal position and generate additional revenue after the budget change. Service tax rate increased from 10 per cent to 12 per cent in the Union Budget 2012 13 with consequential adjustments to individually rated services, adopted to strengthen the fiscal position and raise additional revenue; the announcement also noted an increased share of services in GDP.