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.
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
If you have any query ask in comment below. Share this post on social media by clicking button on left side.