Category: service tax

New service tax rate 14% will be effective from 1st June,2015

Budget 2015 made big change in service tax rate.New service tax rate 14% will be applicable from 1st June, 2015. New service tax rate 14% applicability: Please note that No education cess will be levied with new rate. Old rate is 12.36% with education cess and new rate is 14%. ( No need to add education cess on it). Swachh Bharat Cess 2%: Swachh Bharat cess 2% will be added to all or any services. The date to levy additional swachh Bharat Cess has not been notified yet. Service tax rate and abatement: There are few changes in abatement rate. You can find changes in this article. Budget 2015 changes in service tax. How to calculate service tax and charge in bill? It is simple. You can replace 12.36% with 14%. Swachh Bharat cess effective from 15/11/2015: Please note that swachh bharat cess will be effective from 15/11/2015. The rate of swachh bharat cess is 0.5%. So effective rate of service tax is 14.5%. I have prepared service tax rate chart for fy 2015-16 .Also go with POT rules for better understanding. REad from the following link Service tax rate chart 2015-16. Point of taxation rules : IN easy manner If you have any query ask in comment below. Share this post on social media by clicking button on left side.  ...

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Small service provider exemption : Detailed guide

Service tax providers has small relief via small service provider exemption. Last update for it is in  via notification no. 33/2012- ST dated 20/6/2012 ( small service provider exemption notification). Service providers whose value of taxable services does not exceed Rs. 10 lakhs in previous year can avail exemption scheme for small service provider. Small service provider exemption history: In notification no. 6/2005, dated 1/3/2005, the government has granted small service provider exemption when service turnover does not exceed Rs. 4 lakhs. This limit has been increased with time passed. Recently it is Rs. 10 lakhs. We can see through following table history of small service provider history. Applicable fromRate of service taxNotification 1/4/20054 lakhs6/2005 dated 1/3/2005 1/4/20078 lakhs4/2007 dated 1/3/2007 1/4/200810 lakhs8/2008 dated 1/3/2008 1/7/201210 lakhs33/2012 dated 20/6/2012 Small service provider meaning: Small service provider means taxable value of service provided during the previous financial year does not exceed Rs. 10 lakhs.  Small service provider exemption limit: Small service provider can get exemption up to aggregate value of taxable services up to Rs. 10 lakhs. When turnover of taxable services exceeds Rs. 10 lakhs, service provider is required to charge and pay service tax. We can understand if from below table. Aggregate value of taxable services provided for previous yearAggregate value of taxable services provided for current yearService tax applicable Less than 10 lakhs or 10 lakhsLess than...

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When will new service tax rate 14% be applicable

After budget 2015 , the common question asked to me by various blog readers, when will new service tax rate 14% be applicable? That’s why I have written this post.The new rate will be applicable from 1st June, 2015. Applicability of new service tax rate 14% after budget 2015: I can understand worry of service tax payers about new service tax rate. Let me clear that new service tax rate will not be applicable from 1st April, 2015. When we read the amendment of section 66B, it reads as under, [su_quote]106. In section 66B of the 1994 Act, with...

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Service tax on health care services : Fully exempt

Medical expenses are day to day becoming more costly. Do you need to pay service tax on health care services? No. Thanks to Central Government that it gave mega exemption to medical and para medical services. Service tax on health care services: According to section 66B of mega exemption notification no. 25/2012, Health care services by a clinical establishment, an authorised medical practitioner or para – medics are included in mega exemption and this taxable service is exempt from whole of the service tax. You can see it on following link Note that para medical service is also...

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Service tax registration in 3 days

Service tax is indirect tax and levied on services. To comply with service tax act, service tax registration is first step. Read guidelines below to know whether you are liable for service tax registration. Who is liable for service tax registration? Service provider who has provided services of Rs. 9 lack during the current year is required to get registration number. Scope of turnover to get service tax number: The turnover should include all taxable services. Exempted services are not included to calculate turnover. When service provider provides services from more than one premises, turnover of all these premises...

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