What is the Latest Rate of Service Tax in India?
by Paras Mehra 5.5K
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 1st June, 2016 by 0.50% on account of Krishi Kalyan Cess.
The new rate applicable from 1st 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 15th November, 2015 |
Swachh Bharat Cess of 0.50% introduced |
14.50% |
14% plus swachh Bharat Cess |
|
From 1st 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 6th of every month for the companies and 6th of every quarter for assessee other than companies.
- Two half yearly Service Tax Return should be filed for the period April to September till 25th October and then from October to March till 25th 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.