What is the Latest Rate of Service Tax in India?

By Paras Mehra

( 5.55K Views) April 24, 2016

The Current rate of service tax in India is 14.50% (education and secondary higher education cess sub merged into basic rate). However this rate will be increased from 1^st June, 2016 by 0.50% on account of Krishi Kalyan Cess.

The new rate applicable from 1^st June, 2016 will be 15% (including all cess).

History of Service tax rate

It was the journey of service tax rate which took it from 10% to15% by various finance act from time to time. We describe you the gradual increase from time to time through the table:

Particulars	Finance Act	Rate of Service tax	Remarks
Rate before 2012	-	10.30%	10% rate + .30% education and higher education cess
Rate After 2012	Amended by Finance Act, 2012	12.36%	12% rate + .36% education and higher education cess
Rate from 2015	Amended by Finance Act, 2015	14%	Education and higher cess was sub merged into 14%
From 15^th November, 2015	Swachh Bharat Cess of 0.50% introduced	14.50%	14% plus swachh Bharat Cess
From 1^st June, 2016	Amended by Finance Act, 2016	15.00%	0.50% of Krishi kalyan cess introduced.

Some of the important points relating to rate of service tax may be very useful:

The Cenvat credit of Swachh bharat cess and Krishi Kalyan Cess is not allowed. They have to be paid separately.

The due date of service tax payment is 6^th of every month for the companies and 6^th of every quarter for assessee other than companies.

Two half yearly Service Tax Return should be filed for the period April to September till 25^th October and then from October to March till 25^th April.

Conclusion:

The rates of service tax are clearly mentioned. Hence, if you have any doubt, you can contact us immediately by Contacting us.

Click here to register for Service Tax registration in India.