highlight on applicability of new service tax rates

SERVICE TAX NEW RATES APPLICABLE W.E.F. 1ST JUNE, 2015

Yesterday Central Government has issued most awaited notification for change in effective rate of Service Tax from 12.36% to 14%. New rates will be applicable from 1st June, 2015 (Notification No. 14/2015-ST dated 19th May, 2015).

Service Provided	Invoice Date	Payment Received	Rate of Service Tax
20/05/2015 i.e. Before 01/06/2015	01/06/2015 i.e. on or After 01/06/2015	01/06/2015 i.e. on or After 01/06/2015	14%
	20/05/2015 i.e. Before 01/06/2015	01/06/2015 i.e. on or After 01/06/2015	12.36%
	01/06/2015 i.e. on or After 01/06/2015	20/05/2015 i.e. Before 01/06/2015	12.36%
01/06/2015 i.e. on or After 01/06/2015	20/05/2015 i.e. Before 01/06/2015	01/06/2015 i.e. on or After 01/06/2015	14%
	20/05/2015 i.e. Before 01/06/2015	20/05/2015 i.e. Before 01/06/2015	12.36%
	01/06/2015 i.e. on or After 01/06/2015	20/05/2015 i.e. Before 01/06/2015	14%

For Example,

1. If service is provided on 20th may 2015 i.e.  Before 1st June 2015 And invoice is issued on or after 1st June 2015 and payment is received on or after 1st June 2015 than applicable service tax rate is 14%; or
2. If service is provided on 20th may 2015 i.e.  before 1st June 2015 And invoice is issued before 1st June 2015 and payment is received on or after 1st June 2015 than applicable service tax rate is 12.36%; or
3. on 20th may 2015 if service is provided i.e.  Before 1st June 2015 And invoice is issued on or after 1st June 2015 and payment is received before 1st June 2015 than applicable service tax rate is 12.36%;or
4. If service is provide on or after 01/06/2015 and invoice is issued before 1st June 2015 and payment is received on or after 01/06/2015 than applicable service tax rate is 14%;or
5. If service is provide on or after 01/06/2015 and invoice is issued before 1st June 2015 and payment is received before 1st June 2015 than applicable service tax rate is 12.36%;or
6. on or after if service is provide 01/06/2015 and invoice is issued on or after 1st June 2015 and payment is received before 1st June 2015 than applicable service tax rate is 14%.

Corresponding changes in Rules 6 of Service Tax Rules, 1994 for increase in rate of Service Tax for:

1. Air Travel Agent,
2. Life Insurance Business,
3. Foreign Exchange Brokers and
4. Distributor & Selling Agent of Lottery will also be applicable w.e.f. 1st June, 2015 (Notification No. 15/2015-ST).

 In addition following changes will be applicable w.e.f. 1st June, 2015:-

In addition following changes will be applicable w.e.f. 1st June, 2015:-

1. Service Tax on amusement facilities and Entertainment Events however exemption is available in respect of following services by way of right to admission to,:-
   1. Exhibition of cinematographic film, circus, dance, or theatrical performance including drama or ballet;
   2. Recognized sporting event;
   3. Award function, concert, pageant, musical performance or any sporting event other than a recognized sporting event, where the consideration for admission is not more than Rs. 500 per person.”
   4. Service Tax on Liquor Job Work;

Date of applicability of following provisions is yet to be notified:-

Date of applicability of following provisions is yet to be notified:-

1. Expansion of scope of services provided by Government and Local Authority; and
2. Applicability of ‘Swach Bharat Cess’.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: singh@carajput.com or call at 9555555480.