Service Tax Rate Hike to 14% Effective June 1, 2015; Swachh Bharat Cess Date Pending Announcement

The service tax rate is increased from 12.36% to 14%, effective June 1, 2015. This applies to services provided by the government or local authorities to business entities. The implementation date for the Swachh Bharat Cess will be announced later. The provisions of specific sections of the Finance Act, 2015, namely clauses (a), (c), and (f) of section 107, section 108, sub-sections (2), (3), and (4) of section 109, section 153, and section 159, will also come into force on June 1, 2015, as per the notification by the Ministry of Finance.