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Current service tax rate chart for year 2014-15

Presenting current service tax rate chart for year 2014-15. You can find service tax rate chart 2015-16 with amended rate 14% here.- LINK. The new rate is applicable from june 1, 2015.

Service tax is indirect tax levied on service provided. Service tax is charged at various rates due to availability of exemptions and abatements on various services. Use this chart to decide service tax rate applicable to you.

current service tax rate chart for year 2014-15

There is change in service tax rate from 12.36% to 14% in budget 2015-16. Read following posts,

 budget highlights: service tax 

When will new service tax rate 14% be applicable?

Service tax rate chart for fy 2015-16 : Amended with new service tax rate 14%

 

Service tax rate:

Current service tax rate is 12%. On it, 2% education cess and 1% higher education cess are added. So the effective service tax rate is 12.36% (12% + 3%). This is standard rate and it can be reduced as per available abatement and exemption.

 

Service tax rate chart:

Service provided Amount(column 1) Abatement rate or Exemption rate(column 2) Value after abatement(Column 3=Column 1-column 2) Service tax payable (column 3*12.36%) Effective rate*(Column 4) 12.36%-abatement rate Conditions to be followed to claim abatement or exemption
Tour operator service  
Accommodation booking 10,000 90% 1000 124 1.236% No cenvat credit for input, input services or capital goods.Invoice includes amount of accommodation.
A package tour 10,000 75% 2500 304 3.09% No cenvat credit for input, input services or capital goods.
Other tours 10,000 60% 4000 494 4.944% As aboveThe bill includes gross amount charged for tour.
Financial lease service 10,000 90% 1000 124 1.236% Nil
Transport of goods by rail service 10,000 70% 3000 371 3.708% Nil
Transport of passenger by rail 10,000 70% 3000 371 3.708% Nil
Transport of passenger by air 10,000 60% 4000 494 4.944% Nil
Hotel service (club, pundal, shamiana)with supply of food 10,000 30% 7000 865 8.652% Cenvat credit of goods ( goods 1 to 22 classified under cenvat credit act, 1985 has not been taken)
Renting of immovable property (Hotel, guest house or residential house) 10,000 40% 6000 742 7.416% Cenvat credit for input and capital goods has not been taken
Good transport agency services 10,000 75% 2500 309 3.09% Cenvat credit for input, input services and capital goods has not been taken
Chit fund services 10,000 30% 7000 865 8.652% Same as above
Renting of motor vehicle designed to carry passengers 10,000 60% 4000 494 4.944% Same as above
Transport of goods in vessel 10,000 60% 4000 494 4.944% Same as above
Consturction service  
Carpet area of unit is less than 2000 sq ft and amount charged is less than 1 crore 10,000 75% 2500 309 3.09% Cenvat credit for input used for provision of service has not been taken and value of land is included in the amount charged
In all other cases 10,000 70% 3000 371 3.708% Same as above

 

 How to use effective rate:

Please note that effective rate is for easy calculation. You can use effective rate direct on amount (column 1). So service tax payable is column 1 * column 4.

Basic terms to understand more about  rate of service tax:

Abatement in service tax:

Abatement is partial exemption from service tax. There are different rates of abatement for different services.

 

How abatement reduces amount of  service tax payable?

Taking one example, suppose Mr. Ram provided taxable services worth Rs. 200000 to Mr. Rahim. Service tax rate is 12.36% but abatement available is 70%.

So we will calculate service tax payable by following method:

Value of service provided = 2,00,000

Value after availing abatement = 2,00,000- 70% = 60000

Service tax payable = 60,000*12.36% = 7416

Exemption:

Under notification no. 26/2012, many services are fully exempt under exemption from mega notification and negative list of services.

We will soon present list of exemption services.  Enter your email address in sign up form so that we can mail you when we publish the post.

Remember that no service tax is payable when service is fully exempt.

 

Availment of abatement is optional:

It is not compulsory to avail abatement. service provider can pay service tax on full amount. The rate will be 12.36% of value that time.

Rate under reverse charge:

Under reverse charge mechanism, service tax is paid full or partially by service receiver. To know more about reverse charge mechanism, read following post

Service tax under reverse charge mechanism

Service Service receiver Service provider
Insurance agent services 12.36% 0%
Sponsor ship services 12.36% 0%
Legal service 12.36% 0%
Director’s service 12.36% 0%
Support services by government 12.36% 0%
Supply of manpower 12.36%* 0%
Renting of motor vehicle (If service provider is availed abatement)
Renting of motor vehicle (if service provider is not availed abatement) 6.18% 6.18%
Import of service 12.36% 0%
  • from 1/4/2015 with regards to budget 2015 changes.

Rate of  service tax  on work contract:

Service Service receiver Service provider
When there is no reverse charge and no composition scheme applicable 0% 12.36%
When there is reverse charge applicable and no composition scheme applicable 6.18% 6.18%
When there is no reverse charge applicable and composition scheme applicable
Original work (construction, erection, commissioning etc.) 0% 4.944%
Maintenance, restoration, repair of goods 0% 8.652%
Other work contract including repair, maintenance, plastering of immovable property 0% 8.652%
When there is reverse charge and composition scheme applicable
Original work 2.472% 2.472%
Maintenance work, restoration of goods 4.326% 4.326%
Other work contract 4.326% 4.326%

 

Download the chart in high quality pdf

[sociallocker id=2163]https://www.dropbox.com/home?preview=Service+tax+rate+chart-taxmasalapdf+(1).pdf[/sociallocker]

In taxation field, the important thing is to consider notifications and updates while following any rule. I always try to consider changes in tax rules before writing article.still When you apply this rate, please consider necessary amendments and notifications also.

Use this link to stay updated about service tax circulars and notification:

Service tax government site

 

 

 

 

 

 

161 Comments

  1. Please give the details any service tax exception for environmental products work contcact/waste water treatments/or similar

    • By admin

      There is no exemption available for environmental products.

  2. By deepak

    Dear sir I need new rates

    • By admin

      It is latest rate chart.

  3. By Mohammad Abdul

    Dear Tarannum Khatri,
    I am working with Security Services as an Accountant.
    Do we cover under reverse charge Mechanism( 25% : 75%)?
    Do we have to raise bill with full 12.36% or just 3.09% is fine?
    Please let me know.

    • By admin

      If you work in company and it provides supply of manpower service, no reverse charge mechanism will be applicable.
      If you work in Individual firm, HUF, proprietary, partnership firm, AOP and it provides supply of manpower service, reverse charge mechanism will be applicable if you provide service to body corporate – company and rate will be 3.09%.
      Read following post carefully,
      http://taxmasala.in/reverse-charge-mechanism-in-service-tax/

      • By Mohammad Abdul

        Hi,

        Thank You,

        It is Security Pvt Ltd Company( Registered pvt ltd Company). It is providing Security services (Security Guards) to Banks,some of the banks deducting 75%(9.27%) of the Service Tax, paying rest of the amount and stated as we comes under reverse charge mechanism. Some other banks are paying 100%(12.36%) of service tax with bill amount. Please let me know on this issue.

        Regards,
        Abdul

      • By admin

        Charge 100% service tax on bill because reverse charge is not applicable to company to company transaction. So banks have to pay bill + 12.36% service tax.

  4. By Abdul

    Hi,
    We are providing security services to clients,Do we cover under reverse charge Mechanism( 25% : 75%)? Do we have to raise bill with full 12.36% or just 3.09% is fine?
    Please any body can reply on this .

    • By admin

      If you work in company and it provides supply of manpower service, no reverse charge mechanism will be applicable.
      If you work in Individual firm, HUF, proprietary, partnership firm, AOP and it provides supply of manpower service, reverse charge mechanism will be applicable if you provide service to body corporate – company and rate will be 3.09%.
      Read following post carefully,
      http://taxmasala.in/reverse-charge-mechanism-in-service-tax/

  5. By jamsheer.k

    iam working in a builder/ Developer firm, we are doing villas and apartment projects, what is the service tax rate which we have to pay? and could you please give a complete chart of service tax (works contract) rate from 1/4/12 to 31/03/14 ( any change have in rate of service tax in this period for works contract) ?

    • By admin

      For work contract of construction work , rate is 4.944% if there is no reverse charge applicable. When there is reverse charge mechanism is applicable, rate is 2.472% each for service provider and service receiver.

      Read this post on reverse charge mechanism for more inside.

      http://taxmasala.in/reverse-charge-mechanism-in-service-tax/

  6. By Rahul Nair

    What about the changes in rent a cab service tax rates under reverse charge mechanism

    • By admin

      I am updating the chart.

  7. By Venkatesh

    Renting of motor vehicle under RCM has been changed to 50 % and 50 % for the service provider and service receiver with effect from 1st October 2014 . Kindly update in the above chart, it is misleading.

    • By admin

      I am updating the chart.

  8. By Maneesh M S

    I am working in a Air conditioner Sales and Service Showroom . Please tell me the Correct Service Tax and Abatement %….

  9. By admin

    Check rate of service tax on work contract. The applicable category for repair of air conditioner is maintenance, repair , restoration of goods.Rate when there is no reverse charge mechanism 8.652%. When there is RCM, rate is 4.326% for service provider.

  10. By Kamaldeep Singh

    Hi,
    I have a confusion that bothers me alot. If a hotel, who is providing restaurant service, rooms service and banquet service and is providing all these services at abated rates, it is definitely allowed to claim cenvat of input services as provided for in 24/2012 and 26/2012. However, could the hotel claim the cenvat at full rates? I mean, the hotel building is on rent and the owner pays say 25000 as service tax on rent of hotel building at 12.36% and provides the above mentioned services at abated rates then can he claim the cenvat at full rate being 12.36% or he has to bring it down to abated rates which is something impossible practically since, all three services are being provided from one premises and bifurcation of cenvat at abated rates is difficult.
    Thanks in advance. I am eagerly waiting for a reply.

    • By admin

      Service tax guide clearly indicates that
      Availability
      of Cenvat credit on other inputs, input services and capital goods would be subject to the
      provisions of the Cenvat Credit Rules, 2004 including the provisions relating to reversal of
      credits contained in rule 6 of the said rules. It may be noted the sale of food in the restaurant
      would amount to clearance of exempt goods and thus the provisions of Rule 6 of Cenvat
      Credit Rules will be applicable.

      So use rule 6 and pay service tax on 6% of value of goods sold as per rule 6 (3) of cenvat credit rules. (as you have not maintained separate books for exempt and taxable services .

      • By Kamaldeep Singh

        Thankyou for the reply Sir. I also request to clear the ambiguity on availability of full cenvat credit in case of room rent and Mandap cum catering service (Bundled service)
        Thanks

      • By admin

        For bundled service, full cenvat credit is not allowed but you have to reverse credit as I have mentioned in reply before.

  11. Please help me with the current Service Tax rate for Annual Maintenance Contract and repairing & maintenance for Analytical Instruments. Is there any revision as it was 12.36% earlier? If yes then what is the new rate and it is with effect from when? Awaiting early response please.

    • By admin

      Annual maintenance contract is covered under work contract if you supplies some material too. The rate is 8.652% with abatement. If reverse charge is applicable , rate for service provider is 4.326% of value. read our post on reverse charge mechanism. http://taxmasala.in/reverse-charge-mechanism-in-service-tax/ If you only repair the instruments and no material is supplied, the service is repairing services and rate is 12.36%.

  12. By murali

    we are doing refurbishment works fro IT companies. what will the service tax rates we have to follow

    • By admin

      It is taxable under technical inspection and certification services. Rate is 12.36%.

  13. Dear,
    We did Refrigeration AMC and refrigeration placement(Freight) also, What is the tax shall be provided to customer and what is the reverse tax?Customer said that freight& halting tax they not given.
    kindly explain.

    • By admin

      If you are providing maintenance service with supply of refrigeration, it is work contract and you are required to charge 8.652% following composition scheme. Reverse charge will be applicable when you provide service to companies. In that case, you are required to charge 4.326% on bill.

      to know about reverse charge mechanism, go through my post . http://taxmasala.in/reverse-charge-mechanism-in-service-tax/

  14. i am service receiver.

    we have pay the rent a cab service, but i got confusion for 40% gross value will be pay the service tax 50% pay service tax provider or 50% Receiver.

    just explain the Example.

    Rent 1000
    60% 600
    40% 400 tax will be calculate 12.36% Rs.49.44
    will pay
    50% receiver 24.72
    50% provider 24.72

    what pay the service tax amount?

    • By admin

      If service provider is not availing abatement, rate is 12.26% when there is no reverse charge mechanism.
      If he is availing abatement, rate is 4.944% and there is no RCM.
      If he is not availing abatement and there is RCM , rate is 6.18%. (he has to charge 6.18% on bill) and .
      If he is availing abatement and there is RCM, rate is 0%. ( Remaining 60% of 12.36% service tax is required to pay by service receiver by himself.)
      I will publish one article on rent a cab soon.stay connected with taxmasala.

  15. By kartik

    Does Renting of Air Conditioner come under Service Tax ? We give Air Conditioners on rent , do we need to charge service tax from the customer?

    Thank you

    • By admin

      yes, it is taxable under section 66E (point 6). If turnover of your services exceeds Rs. 10 lakh per annum.

  16. By prasad

    how much service tax would be charge for Student Tanning, Seminars of pvt. ltd. company.

    • By admin

      If there is private coaching, service tax is required to levy at 12.36%. But if coaching is to pre school and higher secondary students , those service is negative list (l) and no service tax is required to charge. Seminars to pvt ltd company is taxable fully.

  17. By bhavesh

    I am in business of tour packager i am arrangeing accocmodation for my client from other tour operator so can i claim cenvat credit and same time what will be rate of service tax i have to charge in my invoice

    • By admin

      For tour operator service, if you are not availing cenvat credit, you can avail abatement.
      If there is only accomodation booking, the abatement rate is 90%. Suppose total value of accomodation booking is 10000. You can avail abatement of Rs. 9000. And required to pay service tax on 1000 at 12.36%. So service tax payable is Rs. 123.6. Which you are required to charge in bill.

      If you are availing cenvat credit, you are required to charge service tax at full rate on full bill value. 12.36% on 10,000.

      • we are travel agents and we take abatements. as per notification no 21/2014 can we also claim cenvat credit from Sep 2014 onwards

      • By admin

        No, you cannot claim cenvat credit while availing abatement benefit.

  18. By Umesh

    I have a proprietory concern unit. I provide the man-power supply to a Pvt Ltd Company. I want to know that , how much service tax should I have to charge in my bill,wrt the latest Budget.

    previously I was charging 3% + cess under reverse charge method . Hence pls advice by mail

    • By admin

      Manpower supply service is now fully in reverse charge mechanism if provided by individual to company. You are not required to charge service tax in bill when charged to pvt ltd company. Company is required to pay itself through reverse charge mechanism. This change will be effective from 1/4/15.
      Read my post for more details:

      http://taxmasala.in/union-budget-2015-16-highlights-service-tax/

      • By amit

        Hi mam,please tell me if i am providing manpower work to individual can I add service tax in bill.

      • By admin

        If your turnover of total services provided during the previous year exceeded Rs. 10 Lakhs, charge 12.36%. (14% from june 1, 2015).

        Read my post for more clarity

        http://taxmasala.in/small-service-provider-exemption/

  19. By Md Aslam Ansari

    dear mam

    we are a agent of pharma row material we deal with customer and supplier we take only agency fees from supplier
    they dont give us servise tax so plz explain me what would be our servise tax

    • By admin

      If your turnover of service provided during the year is less than Rs. 10 lakh, there is no need to charge service tax. Other wise your service tax rate will be 12.36% on bill. (agency services provided.) If you sale raw material, it is sale and out of scope of service tax and only vat is to be charged.

  20. By Prachi

    Under what head is a travel agent who books tickets and also arranges for tour required to register himself under service tax? and what are the tax rates and abatement available to him? Pls do reply

    • By admin

      It is tour operator service. Go through the chart and see column of tour operator services.

  21. Hi,

    I am photographer. I add 12.36% service tax to my final invoice.

    If I delay depositing service tax amount 20 days beyond the last date what is the penalty? and how its calculated.

    Thanks & Regards

    Dayakar Soma

    • By admin

      Interest is payable at 12% p.a.on tax amount.
      penalty is Rs. 100 per day during which the failure continues.

  22. By Abhishek

    Hello:

    ST was exempted for maintenace of govt. Building with govt bodys and PSU. Is the exemption taken back now or is it for contruction work only?

    Maintenance is similar to manpower supply.

    Thanks

    • By admin

      Exemption presently available on Services provided to the Government, a Local authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, shall be restricted only t o:
      a) a historical monument, archaeological site or remains of national importance, archeological excavation or antiquity;
      b) canal, dam or other irrigation work;
      c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or sewerage treatment or disposal.

      So now construction work service provided to government is taxable with effect from 1/4/2015. Read our post

      http://taxmasala.in/union-budget-2015-16-highlights-service-tax/

  23. By Ajay

    We provide non medical and medical services at home to families in care need which includes nursing attendant, nursing procedures, physiotherapy sessions etc.
    Do we have to pay service tax and if yes then how much by client family and how much by company?

    • By admin

      Medical services are exempt from service tax. So no need to charge service tax. Notification no. 25/2012. Section 66B inclusion in mega exemption.

      2. Health care services by a clinical establishment, an authorised medical practitioner
      or para-medics;

  24. By Kumar Vikash

    For my under construction flat in an apartment, the builder has divided 30 lakhs as the Basic Price and defined 5 lakhs towards “Other Charges” in the Agreement. He has charged 3.09% on the Basic Price but is now chanrging 12.36% service tax on remaining 5 lakhs. Is this correct for him to charge 12.36%?

    If it is correct could you please refer me the circualr / notification number given by Govt. Of India?

    Other Charges include Corner + Park Facing Charges, Dual Meter Charges, Lease Rent etc.

    • By admin

      He is correct because the other charges are not construction activity but other services. The same rate will not apply because the services are not naturally bundled services.

  25. By Mohammad Abdul

    Hi,

    I would like to as per 2015 Budget Service Tax will be charges as 14.02% w.e.f April 1st ‘2015.Please let me know i read the budget copy but i have little bit confusion in that.please brief me about this?

    Regards,
    Fayaz.

    • By Mohammad Abdul

      Hi,

      I would like know to as per 2015 Budget Service Tax will be charges as 14.02% w.e.f April 1st ‘2015.Please let me know i read the budget copy but i have little bit confusion in that.please brief me about this?

      Regards,
      Fayaz.

    • By admin

      Service tax rate 14% will be applicable from the date notified by central government. It is not applicable from 1/4/15.

  26. By Mohammad Abdul

    Hi,

    I would like to know how to make board resolution for applying solvency certificate in the bank? please let me know urgent?

    • By admin

      Please get help of some CS as we are not discussing companies act yet.

  27. By Vishal Prasad

    Hi,
    Kindly provide information on the following. I have a few buildings which I have let out to tenants on monthly rent. One such property has 8 shops at the bottom of the building but the rest is let out to other tenants who use it as their residential flats. My total rental income for14-15 has just crossed about 10 lakhs which includes rental earnings from both commercial shops & residential flats. Is the earning from residential flats service tax free or is it all going to be clubbed together for the purpose of service tax calculation? Is there any abatement on rental income? As this is the first year that my rental income has crossed Rs.10 lakhs what is the service tax to be paid by me and when is the deadline for payment? Kindly advise.
    Thanking you

    • By admin

      There is no exemption for rent for residential use. You are required to get registered yourself with service tax department and start charging service tax on bill. Suppose this year’s total rent is 12 lakh, you are required to charge and pay service tax on 2 lakhs only.

      • By Vishal Prasad

        Ma’am, in continuation to my earlier query regarding payment of service tax on rental income from immovable property, kindly inform me whether service tax on rental income is payable on accrual basis or actual receipt basis? Is it compulsory to issue invoice/bill to tenants demanding rent every month?
        Since this is the first year that my rental income has exceeded 10 lakhs, when is the last date for payment of service tax on income exceeding 10 lakhs?
        Thanking you again.

      • By admin

        I have checked the list of exemption and renting of residential dwelling for use as residence is exempt. So you are not required to charge service tax on that. Other income should be covered under service tax area. You can pay service tax on receipt basis as your turnover of previous year is less than Rs. 50 lakh. You are required to issue invoice to tenants per month. It is compulsory. Read my post http://taxmasala.in/service-tax-invoice/ to know more. Still you have any query , you can ask. Last date for payment of service tax for this quarter is 31st March. First, you need to register your self under service tax act.

  28. By Subhasis

    I had booked a flat in dec 14 for Rs 60 lacs and paid Rs 10 lacs till now. The registration is expected next week. Builder received OCcupation certificate yesterday. Pls advise if I need to pay service tax on balance Rs 50 lacs as I am paying it after OC is received.

    • By admin

      If you are purchasing flat, service tax will not become applicable. If you are receiving flat through construction by builder and amount is paid before completion certificate received , service tax should be charged.

  29. By arvind

    Restaurant Bill Rs 5050
    They charged vat plus service tax @4.494% on the Food charges is that correct

    • By admin

      Yes, it is correct. Because 60% abatement is available for food service in restaurant and 12.36*40% = 4.944% on gross bill should be charged.

  30. By M.CALDWELL PANDIAN

    For Service tax remittance for the period 01.01.15 to 31.03.15 service code:00440262 (Transport of goods (By Road)
    what is abatment ? and service tax %
    75% and 12.36% is the old one
    70% and 14% is the new one

    • By admin

      New rate of 14% will be appplicable from the date of enactment of finance bill 2015. The date will be notified by central government.

      The abatement rate has been changed to 70% for all transportation – by road, air or vessel. New abatement rate will be applicable from 1/4/15. So new rate will be 12.36*30% = 3.708%. Once the new rate becomes applicable, the rate will be 14*30% = 4.2%.

      Charge 12.36* 25% ( old rate) = 3.09% till march 2015.

  31. By Kannan

    I am running Service apartment which means just Fully furnished apartment without any service or food . These apartments are rented to company only for residential purpose. Company staff are staying no business in the apartment. Does this qualify for Service tax ? If it qualifies for Service tax , Is there any Exception ? Around 11 lakhs is the income but does not include the expense. If Service tax applicable , do we pay for the income or for the profit ?

  32. By Ravi Kumar

    Dear Maam,

    This is a very useful page I stumbled upon.

    We are a professional training provider and registered as Commercial Coaching or Training in Service Tax Form ST2.

    We have not collected and have not paid service tax for FY13/14 & FY14/15. My accountant says I must pay service tax on entire sales @ 12.36 which is running too much.

    Can I avail 70% Abatement as per your chart above? Under All other cases option? Please update me.

    • By admin

      There is no abatement available for commercial coaching. You are required to pay service tax at 12.36%. Once your value of services exceed Rs. 10 lakhs annually, you are required to calculate, charge and pay service tax.

  33. By Vinodh

    Hi, I am serviced apartments operator, currently we charge 7.42 as service tax after 40% abatement . New charges 14% applicable from April 1st or do we need wait for any notification.? If yes what should be charges .?

    Thanx
    Vinodh

  34. By Dr V Emcee

    We run a Veterinary Clinic in a premises taken on Leave and License and pay a monthly compensation of Rs 50,000/- per year. The Service provider had not informed us regarding the applicability of Service tax and that his rent income exceeds 10 lac Per Annum,

    We have no service tax registration, since we are exempt from service tax in being a Medical/Veterinary services,

    Do we need to pay service tax on the monthly L&L compensation ?

    If such tax be applicable, Is there a mechanism to avail apportionment of tax applicable between Service provider and receiver ?

    If such tax is applicable, is there an abatement applicable ?

    Many Thanks !

    • By admin

      IF your service provider’s annual service tax turnover does not exceed Rs. 10 lakh, no need to pay service tax. Ask him first. If the turnover is more than Rs. 10 lakh, it is his duty to charge and collect service tax and pay to government. Rent of premises is taxable service under the head renting of immovable property. There is no reverse charge mechanism applicable to this service tax. So service provider is required to charge tax.

      • By Dr V Emcee

        Many Thanks for your speedy response and advise ! Would any tax sharing between service provider and receiver or tax abatement rates be applicable in case of our Veterinary Clinic ?

        This may serve to minimise the service tax burden on us, since we have not specifically worked this into our initial calculations,

        Best wishes !

      • By admin

        Have you asked your landlord about his turnover of services? If it is not crossed Rs. 10 lakhs annually, no need to worry. Service tax will not be applicable. There is no sharing for service of renting of immovable property. If you are providing medical services, service tax will not be applicable in this case. The service should be provided by qualified doctors.

  35. By Sabar gusain

    Hi Ma’am

    Pls confirm us new service tax % on transport of Goods (by Rail)

    What is abatment ? and service tax %

    is there any notification for same?

    thanks
    Sabar gusain

    • By admin

      In budget 2015, there is change in abatement for transportation service. Abatement rate for transport of goods by rail is 70% and you are required to charge service tax on 30% of total bill. The change will be effective from 1/4/15.

      Until new service tax rate 14% shall be notified by government, consider service tax rate as 12.36%.

      Read my post, for further clarification.

      http://taxmasala.in/when-will-new-service-tax-rate-14-be-applicable/

  36. By RAMIZ KHAN

    SIR/MAM
    plz reply the rate of service tax on sales of hotel services (ibt)?

    • By admin

      Hotel only or hotel with restaurant?

  37. By @Ab2711

    Hi.. Admin..
    I want to know what is the billing procedure in .Scientific and technical consultancy services & ntellectual Property Rights Service other than Copyright service

    • By admin

      Read our article on service tax invoice. You are required to charge 12.36% on bill until new rate 14% be notified by government.

      You can know about service tax invoice from this article..http://taxmasala.in/service-tax-invoice/

  38. We run a hotel and we claim abatement on both restaurant and room bills. Separate books for restaurant and rooms are maintained. I can claim CENVAT for restaurant turnover – which items are covered. Secondly for what capital and other items I can claim CENVAT credit for amount collected as service tax for room rent.

    • By admin

      You cannot claim cenvat credit as you are availing abatement scheme. I will publish separate article on cenvat credit soon. Stay connected with taxmasala.

  39. By Gurumurthy

    what is effect date for new service tax rate i.e. 12.36% to 14%

  40. By aadil

    plz reply the rate of service tax on Providing CCTV cameras security systems in banks…

  41. Whether it is mandatory to take abetment of Transportation of goods by Rail ?
    As per the notification no. 8/2015, cenvat credit is not admissible on the services of Transportation of goods by rail. Can we claim the cenvat credit if we provide the same service without abetment of 70%.

    • By admin

      If you do not avail abatement, you can charge service tax at 12.36% and take benefit of cenvat credit. You can choose beneficial option.

  42. We are Quintessence Technologies Ltd.We do web sites, web applications and web branding/SEO. We also have a wing that mentors graduates to find their career/personal training. I would like to know if this mentoring fee comes under service tax and if so do we have abatement. If it comes under service tax 100%, is it advisable that I do the mentoring on a personal basis or as a partnership company to avail abatement?

    • By admin

      Mentoring service is not in negative list of service tax. The service is taxable and you are required to charge 12.36% on bill. There is also no reverse charge mechanism available for this service. So form of business is not important here.

  43. By Kannan

    I am running Service apartment with Service tax rate of 7.41% after abatement as per your guidelines. Here we are providing accommodation only for corporate employees to stay and rent is collected on monthly. Service tax for the rent is also shown in the invoice. But Current / Electricity charges are actuals which corporate need to pay as part of the monthly rent. If current charges are added in the invoice then we need to collect service tax . Is that correct ? But practically current/power we should not collect service tax. Can I show the power charges in the invoice and don’t collect service tax for it ? Is that correct process ?

    • By admin

      It is paid by you as pure agent and not covered under service tax liability. Don’t need to charge service tax on it or include it in service tax value.

  44. By Chandrakala Baperkar

    for new registration housekeeping service provided by propritorship concern will be under which sevice tax code

    • By admin

      Cleaning services is covered under service tax and is taxable. If you supply manpower for housekeeping, it is also covered under reverse charge mechanism.If proprietary concern provides service to company, 100% service tax shall be paid by company under reverse charge. Budget 2015- update.

  45. By Masi

    Hello Mam ,
    I posted the following on 13th April and still await moderation.Could you please expedite?

    We are agents for Sales/Service/Installation/Maintenance of Scientific/Analytical Equipments from various overseas prinicipals.

    Customers buy the goods based on our sales promotion directly from our principals after paying our Principals by LC/TT remmitance.

    We get a overriding commission for Sales/Installation/Commissioning/Maintenance for Warranty period ranging from 1 to 5 years.

    Can we use abatement clause(as we don’t get CENVAT credit) and consider this under “Other works contract” to pay service tax of 7.41% on 40% of our Commission?

    Would appreciate your help in clarifying our doubts.
    In our case we can neither charge the customer nor our Principals.

    Therefore we would like to have this doubt clarified at the earliest please.

    Thanks

    • By admin

      I am very sorry for late reply.

      In your case, you are not providing work contract services but you are working as commission agent. So abatement is not avaialbe and 12.36% service tax rate will be applicable.

      Other points are please refer place of provision of services rule. As per rule, location of service provider – (your company) should be India for taxability.

  46. By Ramarao

    i am operating photo colour lab, i pay service tax on full amount or any calculations. please suggest me.

    • By admin

      Please give more details of your question.

  47. By SANGAM SHAH

    Mam, What will be the rate of Service Tax to be charged on Commercial Vehicle given on Rent? All the expenses like Fuel,Driver,Maintenance will be by Service provider.

    • By admin

      The rate will be 12.36%. If it is commercial vehicle and renting for transportation of passenger, 60% abatement is available and rate is 4.944%.

  48. By pawansut swami

    I started a proprietorship firm (marble business), my turnover crossed Rs. two crore and paid transport charges more than rs. 25 lakhs.
    Is this cover under reverse charges ??
    i m only trader not manufacturing concern.

    • By admin

      If you are only selling marbles, no need to charge or pay service tax. If you are providing any service, the service tax will be applicable. For proprietor y concern, you are not liable to pay service tax under RCM.

  49. By Sailaja

    Hi.Kindly advice on the WCT tax that needs to be considered for a electrical contract for a new building?

    • By admin

      For work contractor of original work service tax would be levied of 40% of bill at 12.36% ( Up to 31st May , 2015 ) and 14% from june 1, 2015.

      SO the rate is 4.944% Upto 31st May, 2015.

      New rate will be 5.6%.

      Read full post on work contract.http://taxmasala.in/service-tax-on-work-contract/

  50. By Balbir

    Whether service tax is required to dect from the payment o
    f interest while paying by the govt deptt

    • By admin

      Please clarify the question.

  51. Is service tax applicable on entrance tickets sold by a hotel for
    visiting its premises. The tickets ensure that a person can visit the
    hotel only. No food or drinks are allowed. Service tax applicability in
    2014-15 & 2015-16.

  52. By visu

    I am flat promoter ,can you explain me the service tax chargers for new flats ,with example , for the new 14% charge made by the government which is effective from 1/6/2015

    • By admin

      If you only sell the ready made flats , no service tax would be charged. If you promote flats of others and get commission, it is commission income and you are working as agent. Service tax would be levied at 14% with effect from 1/6/15. However, read my post about small service provider exemption.

      http://taxmasala.in/small-service-provider-exemption/

  53. By mohammad sajid

    madam i am doing buisness of hiring of vechile in railway for contract of hiring of minintruck .what was the rate of service applicable on me pls tell and under which catagary of tax slab

    • By admin

      Please give more details about question.

      • By mohammad sajid

        madam,मैंने रेलवे में minitruck किराये पर लगाया हूँ।जिसका हर महीना प्रतिदिन के हिसाब से किराया और desiel का प्रति किलोमीटर के हिसाब से दोनों को जोड़ कर बिल बनता है।मुझे ये जानना है के टैक्स किस कटैगरी में आएगा और कैसे निकाला जाये।गाडी में रेलवे staff ट्रैक maintaince के लिए जाते ।क्या abatement शामिल कर टैक्स निकाला जायेगा ।

  54. By Vishal Prasad

    Ma’am

    Kindly shed some light on the following. I have let out two buildings to several tenants and the rent collected by me during 2014-15 exceeded Rs.10 lakhs on 21.3.15. Subsequently I applied for Service Tax Registration on 25.3.15 & Registration was granted to me & Form ST-2 issued to me on 19.5.15. Kindly advise on the following:

    1) What is the rate of Service tax payable on “Renting of immovable property Service” and is there any abatement?

    2) Since the Service tax Registration number was only generated on 19.5.15 through Form ST-2, do I now have to pay the service tax on the amount of rent that has exceeded Rs.10 lakhs? The total Rent collected during 2014-15 amounted to Rs.1105785 and accrued rent ( Due) for 2014-15 amounts to Rs.75982/-. On what amount do I pay Service tax.

    3) When should I file the Returns and for what period as the due date of filing the Return for the period (Oct’14 to Mar’15) has already expired.

    4) Will I have to pay any penalty or interest on any of the above.

    I shall remain ever grateful for your kind advise on the above.

    Thanking you

    Vishal Prasad

  55. By satish kumar

    Madam service tax new rate hotel accommodation & restaurant service old rate accommodation 7.42% & Restaurant 4.94%

    • By admin

      New rate for hotel service with supply of food is 9.8% on bill and for restaurant service, rate is 5.6%.

  56. By Rajendra Kumar Verma

    Can a transporter (service provider) collect ST from any Pvt Ltd or Ltd Company? Please clear out his in brief.

  57. By Shashikant Khadke

    WHAT IS PERCENT OF THE SERVICE TAX ON RENOVATION WORK OF IMMOVABLE PROPERTY

    • By admin

      9.8% when there is no reverse charge. and 4.9% when there is reverse charge.

  58. By Shashikant Khadke

    sorry, for not present , F.Y. 2014-15 only

  59. By thavnesh kumar

    I HAVE A HOTEL AND REGISTERED IN SERVICE TAX AS HOTEL, ACCOMMODATION. AND CHARGE THE SERVICE TAX ON ROOM, ACCOMMODATION. IN HOTEL I AM PROVIDING THE FOOD TO CUSTOMERS BY ROOM SERVICE. I ALSO CHARGE THE SALE TAX ON FOOD. IN BILL FOOD AMOUNT IS CLEARLY SHOWN SEPARATELY. I HAVE NO RESTAURANT IN HOTEL. I PROVIDE THE FOOD ONLY IN ROOM. WHETHER SERVICE TAX WILL BE APPLICABLE ON SUPPLY OF FOOD. SOME ONE HAS TOLD ME THAT YOU ARE PROVIDING THE SERVICE TO CUSTOMER. SO IT COMES UNDER THE OTHER SERVICES. WHETHER I AM LIABLE FOR SERVICE TAX ON SUPPLY OF FOOD ?. IF I HAVE TO CHARGE SERVICE TAX THEN WHAT RATE OF SERVICE TAX WILL BE APPLICABLE ? KINDLY SUGGEST ME QUICKLY.

    • By admin

      You are not providing restaurant service but providing food with hotel accommodation. It is clearly bundled service. Service tax rate will be 9.8% ( Single rate) on total bill ( Hotel charges + charges for food supplied in accommodation) without vat.Remember cenvat credit of goods is not allowed while availing abatement.

  60. By Rajesh

    Dear Admin,

    Have a few questions

    1. How much service tax is applicable for cleaning service & and Pest control services
    – If the service is provided by a Pvt Ltd company to an Invidivual
    – If the service is provided by a Pvt Ltd company to an Pvt ltd company.
    2. If we include the word like contract/maintenance will there be any exemption/ abatement

    • By admin

      The rate of service tax for cleaning service is 14% from 1st june, 2015.

      There is no reverse charge applicable for cleaning service so no matter who is providing service to whom.

      it is not work contract service and no abatement or exemption is available.

      However, check SSI exemption details from following link.

      http://taxmasala.in/small-service-provider-exemption/

  61. By Amit Roy

    How many time service tax return fii up in the year and month?

  62. By Jahanara Begom Choudhury

    Madam i along with my few friends established a small firm and working in Data digitization or Data entry projects since January 2015. That Madam our first project will completed soon which Value is Rs. 4 lakhs 96 thousand. So madam firstly, we want to know weather we need service tax registration and if so then what is the process for the open of an service tax registration. Secondly want to know what is the percentage of service tax of such kind of firm.

  63. I am retired working as Consultant providing ESH advisory service and providing support in the area of training, risk assessment,safety review etc. I am charging as professional fees and donot exceed Rs 10 lakhs/annum. Do I still have register for Service tax and pay ?

    • By admin

      If the turnover is less than 10 lakhs per annum, you are not required to charge or pay service tax. However, you are liable to get service tax registration when turnover crosses Rs. 9 lakhs per annum. Please read my post, http://taxmasala.in/small-service-provider-exemption/

  64. By Ashvin A

    I am a reseller of software products. My purchase invoice has service tax and vat. If I further sell this product to end user, Do I have to charge service tax?. If yes, then can I get abatement on my purchase – service tax? What percentage of abatement?

    • By admin

      No, you are not providing any service. You are selling in built software so service tax is not applicable but vat is applicable here as per state vat laws.

  65. By Kayle Braganza

    Ma’am
    i need to know if service tax is applicable on hospital service and the percentage? if yes then on which hospital services is its appliclable? or are we exempted on any?? ma’am i require in detail, as we have a hospital. thank you, waiting for your reply

  66. By Kannan

    I am running service apartment. During March 2015 applied and received the Service tax ID. During the beginning of the financial year 2014-2015 I did not expect revenue would increase more than 10 Lakhs so did not get any service tax from the Customers . I understand there is exception to pay Service tax for the first 10 lakhs and balance amount we could pay the service tax. Is my understanding correct ? Do we have such exception for first time service tax payers ? Thank you

  67. By rupali

    Respected Mam,
    We are working as A-class govt. contractor in haryana, punjab and central govt. departments like P.W.D B&R, police housing corporation, warehousing corporation etc.we are consturcting their building projects as const. of office building,const. of food storage godowns etc.In some projects department is supplying cement and deducting the cost of cement on fix rates from our bills.In this case:-
    i) In which consts.(projects) service tax is applicable.
    ii) who will pay the service tax amount.
    iii) May the department can deduct the service tax from our bills.
    iv) May the departments can mention in their tender notice that the service tax (as applicable) or coming into force shall be deducted from the bills of agency.
    Please help for our query and oblige.I will be very thankful for obligation.

    Thanks with Regard
    Er.Rupali Mittal

    • By admin

      You can avail composition scheme and pay service tax at abated rate ( Depends on work) on total bill excluding material supplied by contractee and deducted from bill or you can separate service and material portion and charge 14% service tax on bill.

      Reverse charge mechanism will also be applicable in case of work contract.

      You need to take care of all the points.

      These articles will help

      http://taxmasala.in/service-tax-on-work-contract/

      http://taxmasala.in/reverse-charge-mechanism/

  68. By Ramchandra Jadhav

    The Security contractor is providing Security guards to our Housing Society and we deduct 1% TDS from his quarterly bill being a proprietary firm. Now he says 14% Service tax will be added in the bill. Kindly advise how to calculate Service tax on monthly bill of Rs. 28,000/-

    • By admin

      Add 14% on 28000. and deduct 1% from 28000. Not from service tax portion.

  69. By satishkumar

    hello madam,

    One of our client is providing renting of immovable property services for his building.

    does he needs to collect 14% or can he get any abatement benefit rate of 70%

    • By admin

      He can get abatement benefit if he is not availing input tax credit.

  70. By Gopi

    we are doing refrigeration and air conditioning services for factories and star hotels. Can you tell us the percentage of service tax for us to claim from the customer?

  71. By Kartik S

    Hi, I am a tour operator, my gross receipts in last three year is Around Rs. 25-30 lakh per annum. For such service, service tax is payable on 25% after deducting abatement. My query is while calculating threshold limit of Rs10 Lakh for small service provide we need to consider whole amount(ie Rs. 25-30L) or only 25% of the same. Do i require to pay service tax for last years please advice.

  72. By sunny

    can service tax registration and not filling half year return (due to non registration of service tax) penalty be imposed simultaneously……

  73. By Mustafa

    can a person claim input tax credit against service tax collected on rent of immoveable property

  74. By ramesh sonkar

    i have DJ business. I provide DJ in marriages and functions. I registered under service tax act on 04/04/2014. I did not file service tax return so far and did not deposit service tax charged by me.
    How much i will have to pay as penalty for not filling service tax return and rate of interest for not depositing service tax.
    for FY 2014 and 2015

  75. By RAVIRAJ

    WHAT IS THE CONCEPT BEHIND THE REVERSE CHARGE MECHANISM??? RAVIRAJ

  76. By Kannan

    In the chart Renting of immovable property (Hotels , Guest house) is shown as 40% abatement . But you had mentioned service apartment fully furnished and given for rent is not service tax chargeable. I am running Service apartment fully furnished no real service given on monthly rent , auditors say service tax to be paid > 10 lakhs so ended by getting Service tax ID. Some members and various forums say service tax not is applicable. Really confused and there is no clear definition. Please help

  77. By admin

    If we check negative list of services given in notification 26/2012, services which are in negative list – point m
    Services by way of renting of residential dwelling for use as residence.

    But services of renting by hotels, guest house meant for commercial purpose are taxable.

    Now, in your case, what you have given on rent is not residential dwelling but similar to guest house ( which can be used to give on rent basis – commercial purpose in short), service tax liability will become applicable.

    I have checked twice for clarification. Better is that get registration certificate and start charging and paying service tax.

  78. By Kannan

    Thank you Madam for your quick response. Please let me know the service tax rate as on 2014-2015 as I see 40% abatement . Is that correct ? Do I need to pay service tax 12.36% of the total income or is there abatement applicable ?

  79. By admin

    If you are not availing cenvat credit on input services, inputs and capital goods, you can avail abatement 40%.

    Suppose bill is 10,000. You can reduce the amount by 40% = 4000. Net is 6000. Charge service tax at 12.36% on 6000 = 741
    Or 7.416% on total bill Rs. 10000= 741

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