{"id":139,"date":"2015-06-24T12:53:40","date_gmt":"2015-06-24T12:53:40","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=139"},"modified":"2021-11-15T18:59:18","modified_gmt":"2021-11-15T13:29:18","slug":"clarification-on-rate-of-service-tax-regarding","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/clarification-on-rate-of-service-tax-regarding\/","title":{"rendered":"RATE OF SERVICE TAX – REGARDING."},"content":{"rendered":"

<\/h2>\n

\"Untitled22\"<\/a><\/p>\n

CLARIFICATION ON RATE OF SERVICE TAX<\/a> – REGARDING<\/strong><\/span><\/h2>\n

1. Doubts have been expressed in various forums regarding the proposed increase in the rate of service tax from 12.36% (including education cesses) to 14% on the value of taxable service.<\/p>\n

2. It may be noted that changes proposed in the Budget have\/are coming into effect on various dates as already indicated in JS (TRU-II) D.O. letter dated 28th<\/sup>February, 2015.<\/p>\n

Certain amendments made in the Finance Act, 1994, including the change in service tax rate, will come into effect from a date to be notified by the Government after the enactment of the Finance Bill, 2015.<\/p>\n

3. In this regard your attention is invited to clause 106 of the Finance Bill, 2015 and paragraph 3 of JS (TRU-II) D.O. letter, which\u00a0\u00a0is reproduced below:-<\/p>\n

\u201cService Tax Rate:<\/span><\/strong><\/p>\n

3.1\u00a0\u00a0The rate of Service Tax<\/a> is being increased from 12% plus Education Cesses to 14%. The \u2018Education Cess\u2019 and \u2018Secondary and Higher Education Cess\u2019 shall be subsumed in the revised rate of Service Tax.<\/p>\n

Thus, the effective increase in Service Tax rate will be from the existing rate of 12.36% (inclusive of cesses) to 14%, subsuming the cesses.<\/p>\n

3.2\u00a0\u00a0In this context, an amendment is being made in section 66B of the Finance Act, 1994. Further, it has been provided vide clauses 179 and 187 respectively of the Finance Bill, 2015 that sections 95 of the Finance Act, 2004 and 140 of the Finance Act, 2007, levying Education Cess and Secondary and Higher Education Cess on taxable services shall cease to have effect from a date to be notified by the Government<\/p>\n

3.3\u00a0 The new Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015<\/p>\n

3.4\u00a0\u00a0Till the time the revised rate comes into effect, the \u2018Education Cess\u2019 and \u2018Secondary and Higher Education Cess\u2019 will continue to be levied in Service Tax.\u201d<\/p>\n

4. The paragraph reproduced above is self-explanatory and it is clear that the new Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015. The date will be notified in due course after the enactment.<\/p>\n

5. Similarly, certain doubts have been raised with regard to abatement on the value of services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year.<\/p>\n

Valuation of services provided in relation to serving of food or beverages by a restaurant, eating joint, or a mess is determined as provided in rule 2C of the Service Tax (Determination of Value) Rules, 2006.<\/p>\n

5.1\u00a0In the Union Budget, 2015, no change has been made in these rules; therefore, any confusion is unwarranted.<\/p>\n

Further, as explained above, the rate of service tax on the specified portion of the amount charged for such supply which is 40% continues to be 12.36% (including cess) at present i.e. 4.944 %.<\/p>\n

The rate of Service tax, as discussed above, will continue unchanged till a date that will be notified in due course.<\/p>\n

6. Wide publicity may be given so that the assesses and the public are aware of the above.\u00a0 All the major Industry\/Trade Associations may be informed accordingly.<\/p>\n

\n","protected":false},"excerpt":{"rendered":"

CLARIFICATION ON RATE OF SERVICE TAX – REGARDING 1. Doubts have been expressed in various forums regarding the proposed increase in the rate of service tax from 12.36% (including education cesses) to 14% on the value of taxable service. 2. It may be noted that changes proposed in the Budget have\/are coming into effect on …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150,172,9,4],"tags":[2808,2804,2806,2809],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/139"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=139"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/139\/revisions"}],"predecessor-version":[{"id":18899,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/139\/revisions\/18899"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}