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.
I am working with the Pvt Ltd Company.We Provide Security Services(Security Guards) to the banks and other companies.Some Banks are not paying Service Tax to us as they are considering partial reverse charge Mechanism(25% 75%).Do we cover under reverse charge Mechanism( 25% : 75%)? Do we have to raise bill with full 12.36% or just 3.09%(25%) is fine? Please let us know.
If body corporate ( Your company) is charging bill to banks ( Corporates), reverse charge mechanism will not be applied. Charge 12.36% in bill and pay to government.Read my article, https://taxmasala.in/service-tax-on-manpower-supply-service/ . From june 1st 2015, the rate is 14%
We are a servie receiptent , if we received the bill for the month of May in the month of june and we paid the same bill in the month of june or june onwards what is the service tax applicable
Read my post for clarification.
https://taxmasala.in/?s=point+of+taxation
what will be the service tax position for a tour operator in Delhi.
For tour operator service, service tax will be charged as per service provided.
First, Refer this chart for rate of service tax for tour operator.
https://taxmasala.in/service-tax-rate-chart-for-fy-2015-16/
Also refer
https://taxmasala.in/small-service-provider-exemption/
Stil have question, let me know….
I am working in a public limited company,I have to make a payment for telephone bill relates for the period 29.04.2015 to 29.05.2015 an the bill due on 02.06.2015. Is service tax rate applicable with new rate or old rate?
The new rate 14% will be applicable because payment and bill are after 1st june, 2015.
Read my post
https://taxmasala.in/point-of-taxation-rules-2011/
I am working in PSU, A bill of Civil revenue repair bill is arises for a work Which has been completed before June’2015, please clarify whether rate of service tax will be 14% or not, Further how much abatement will be provided and is civil repair job came under RCM, what is the rate of service repair and service provider. is there any change if bill is of Civil- Capital instead of revenue ……
Thanking you.
go through this link then if any question, ask.
https://taxmasala.in/service-tax-on-work-contract/
https://taxmasala.in/?s=point+of+taxation
I am the owner of Pvt.Ltd.Company working for events & entertainments. My Yearly turnover is less than 1crore so what is my due date to pay service tax online.
6th of succeeding month.
Go through this
https://taxmasala.in/service-tax-e-payment-easy-steps/
Whether any tax payer is eligible to get exemption u/s 80D of I.T.Act,1961 for meidiclaim premium paid in full including service Tax ?
Refer my article – https://taxmasala.in/deduction-under-section-80d/