Tuesday, May 19, 2015

New service tax rate of 14% to come into effect from June 1


PTI | May 19, 2015, 10.56PM IST
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The new rate of 14 per cent announced by finance
minister Arun Jaitley in his Budget for 2015-16
would come into effect from June 1.
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NEW DELHI: The new service tax rate of 14 per
cent will come into effect from June 1, government
on Tuesday said, in a move that will make eating
out in restaurants, insurance and phone bills
expensive, among many other things.
The service tax is currently levied at the rate 12.36
per cent including education cess.
Top official sources said that the new rate of 14
per cent announced by finance minister Arun
Jaitley in his Budget for 2015-16 would come into
effect from June 1.
In his Budget speech, Jaitley had said that to
facilitate a smooth transition to levy of tax on
services by both the Centre and the States, "it is
proposed to increase the present rate" of service
tax plus education cess from 12.36 per cent to a
consolidated rate of 14 per cent.
Service tax is levied on all services, expect a small
negative list.
Advertising, air travel, services of architect, certain
type of constructions, credit card, even
management, and tour operator are some of the
important services which attract tax.