New Service Tax Rate of 14% Effective from 1st June 2015

By | May 20, 2015

New Service Tax Rate of 14% will become effective from 1st June 2015. Current Service Tax Rate of 12.36% (12%+2%+1%) will remain effective till 30th May 2015 and from 1st June 2015 service tax rate will change to 14%(Note 2% Swach Bharat Cess is not notified by the Government). Central Government has increased the service tax rate in budget 2015 and same has been approved by President of India but for any changes in Service tax rate government has to separately notify the date from which that change in rate will effective, So Central Government through Ministry of Finance .i.e Department of Department of Revenue (Tax Research Unit) has issued the notification no D.O.F.No.334/5/2015-TRU on 19th May 2015. Section 66B of the Finance Act, 1994, prescribes the service tax rate. It has been amended by Section 108 of the Finance Act, 2015. The rate of Service Tax is being increased from 12% to 14% (including cesses). The increase in Service Tax rate will come into effect from 1st June, 2015. (Notification No.14/2015-Service Tax, dated 19th May, 2015 refers)

 

GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) NOTIFICATION New Delhi, the 19th May, 2015 No. 14/2015-Service Tax

   Section 66B of the Finance Act, 1994, prescribes the service tax rate. It has been amended by Section 108 of the Finance Act, 2015. The rate of Service Tax is being increased from 12% to 14% (including cesses). The increase in Service Tax rate will come into effect from 1st June, 2015. (Notification No.14/2015-Service Tax, dated 19th May, 2015 refers)

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