Service tax rate chart for fy 2016-17 : with new service tax rate 15%

Service tax rate from 1st June, 2016 is 15% with krishi kalyan cess. I have given here service tax rate chart for FY 2016-17 to describe rate on various services with abatement and reverse charge mechanism – updated with budget 2016 changes. ( Service tax will be replaced with GST from 1st July, 2017. Know latest gst rate here)

Note: Budget 2016 has increased service tax rate from 14.5% to 15% by levying Krishi Kalyan Cess at 0.5% . This change will be effective from 1st June, 2016. Till that you can use chart given below to decide service tax rate. 

 

Service tax rate chart for fy 2016-17 with new service tax rate 15%:(applicable from 1/6/2016- with krishi kalyan cess)

Service provided Amount( 1) Abatement rate or Exemption rate( 2) Value after abatement( 3=1-2) Service tax payable (3*15%) Effective rate to be charged on bill*( 4) =15%-abatement rate Conditions to be followed to claim abatement or exemption
Tour operator service  
Accommodation booking 10,000 90% 1000 150 1.50% No cenvat credit for input, input services or capital goods.Invoice includes amount of accommodation.
tour (other than above) * 10,000 70% 3000 450 4.50% No cenvat credit for input, input services or capital goods.
Transport of goods by rail by person other than Indian railway 10.000 60% 4000 600 6% No cenvat credit for input, capital goods. cenvat credit on input services are available*
Financial lease service 10,000 90% 1000 150 1.5% Nil
Transport of goods by rail service by Indian railway 10,000 70% 3000 450 4.5% cenvat credit of input services are available*
Transport of passenger by rail 10,000 70% 3000 450 4.5% cenvat credit of input services are available*
Transport of passenger by air in economy class 10,000 60% 4000 600 6% Nil
Hotel service (club, pundal, shamiana)with supply of food 10,000 30% 7000 1050 10.50% 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 900 9.00% Cenvat credit for input and capital goods has not been taken
Good transport agency services( Other than household goods) 10,000 70% 3000 450 4.50% Cenvat credit for input, input services and capital goods has not been taken
Chit fund services 10,000 30% 7000 1050 10.50% Cenvat credit for input, input service and capital goods are not available
Renting of motor vehicle designed to carry passengers 10,000 60% 4000 600 6.00% Same as above
Transport of goods in vessel 10,000 70% 3000 450 4.5% cenvat credit for input, capital goods are not available. Cenvat credit on input service is avaialble*
Consturction service  
For all cases availing composition scheme* 10,000 70% 3000 450 4.5% Cenvat credit for input used for provision of service has not been taken and value of land is included in the amount charged
Transport of used household goods by GTA* 10,000 60% 4000 600 6.00%* cenvat credit on input, input services and capital goods are not available.

 * changes applicable from 1st April, 2016. For detail article about service tax changes applicable from 1/4/16 read here.

Note: Service tax rate 14.5% is applicable for period during 1/4/2016 to 31/5/2016. Refer point of taxation article for further clarification. In above chart, replace 15% with 14.5% in above chart to calculate old rate.

How to use effective rate:

Please note that effective rate is for easy calculation. You can use effective rate direct on amount (column 1)- bill charged. 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. Kapil provided taxable services worth Rs. 400000 to Mr. Rahim. Service tax rate is 14% but abatement available is 70%.

So we will calculate service tax payable by following method:

Value of service provided = 4,00,000

Value after availing abatement = 4,00,000- 70% = 120000

Service tax payable = 120000*15% = 18000

Conditions: No cenvat credit has been availed.

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.

Small service provider exemption:

You can avail small service provider exemption if your yearly turnover of taxable service is less than Rs. 10 Lakhs. For more details. Read the article – small service provider exemption.

Reverse charge mechanism chart:

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 15% 0%
Sponsor ship services 15% 0%
Legal service 15% 0%
Director’s service 15% 0%
Any services by government* 15% 0%
Supply of manpower 15%* 0%
Renting of motor vehicle (If service provider is availed abatement)  6%  0%
Renting of motor vehicle (if service provider is not availed abatement) 7.5% 7.5%
Import of service 15% 0%

 

Rate of  service tax  on work contract:

Service Service receiver Service provider
When there is no reverse charge and no composition scheme applicable 0% 15%
When there is reverse charge applicable and no composition scheme applicable 7.5% 7.5%
When there is no reverse charge applicable and composition scheme applicable
Original work (construction, erection, commissioning etc.) 0% 6%
Maintenance, restoration, repair of goods 0% 10.50%
Other work contract including repair, maintenance, plastering of immovable property 0% 10.50%
When there is reverse charge and composition scheme applicable
Original work 3% 3%
Maintenance work, restoration of goods 5.25% 5.25%
Other work contract 5.25% 5.25%

The service tax rate chart for 2016-17 is updated on 31/5/2016 after applicability of swachh Bharat cess and krishi kalyan cess covering budget 2016 changes.  Use this chart for transaction beginning from 1/6/16. Refer point of taxation rules for more clarification. Use this link to stay updated about service tax circulars and notification: Service tax government site . Share this article on social media to encourage me to write more.

 

 

 

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266 thoughts on “Service tax rate chart for fy 2016-17 : with new service tax rate 15%”

      1. hello mam
        can you please tell simply a negative list of service
        i did’t find everywhere i saw a lot of content without any list
        a simple list like
        Sec 66D Negative list of services
        1.
        2.
        3.
        4.
        Like this please help
        email id: mojiburerehman@gmail.com

      3. please suggest whether there is any reverse charge mechanism applicable in civil works i.e construction contract, also clear me what is the service tax rate in civil contract and what is the abatement rate. I am very much confused regarding construction works service tax rule. plzz clear me properly regarding construction contract

    2. I have recently taken up a retainership assignment with one Public Limited Co. @ 25 Lakhs pa. The Company is in Pharma Business and my services are towards their Quality System improvement.
      My question is at what rate the service tax will be charged – whether any exemption will be permitted.

  2. We have Pvt Ltd company and provide Software consultancy services to other companies which are Pvt Ltd.

    What would be Service charge implications as per new budget effective 1st June

  3. madam, what is the service tax payable on consultancy engineering services

  4. Madam, What is service tax charged for month of May 2015, Security & Manpower bills.(12.36% or 14%)

      2. plz provide mr repair contracter service tax and vat calculation ,Chandigarh

        state

  6. I’m working as a consultant (Engineering) to a company. while I’m claiming my monthly invoice of for 2 lakhs (which includes the ST), they are paying me after deducting the 10% TDS i..e, 20,000/- on invoice amount. Could please clarify me as per 2015-16 Rules;

    1) whether the TDS deduction shall be on Invoice amount or the amount excluding the ST amount.
    2) If ST is paying as said above, what is the ST amount?
    3) Please send a example calculation sheet to understand.

    1. Tds should not be deducted on service tax amount if service tax amount is shown separately in bill.

      So if invoice is 20000 inclusive service tax at 12.36% ( Assuming shown separately).

      Tds will be 17800 ( 20000/112.36*100) *10% = 1780.

      Reference – circular no. 1/2014 dated 13/1/14

      1. You have wrongly calculated to TDS. TDS is not deductable from the SERVICE TAX AMOUNT, since this amount has to pass on to the Government and hence IT DEPARTMENT DOES NOT CONSIDE SERVICE TAX FOR THE PURPOSE OF TDS …………pl clorrect

  7. mam we have taken computer repair and maintanance service in may month but supplier made bill in 1st jun 15 and service tax charge 14% insted of 12.36 % as per point of taxation Pl.see 4(a)(i) pl.refer how many % service tax apply by supplier pl.guide

      1. if payment made before 1-june then service tax rate will be 12.36% otherwise 14%

      2. If service is provided before 1st june and payment is made also before 1st june, service tax rate is 12.36% for that service.

  8. Mem, we are pvt ltd company (works contract sercices like.. Errection, commission) business like LPG Reticulated System in Flats. So what is our service tax payable. 5.6% or Abatement Scheme ?

      1. Dear Madam,

        Please provide service tax information about rent on buildings, we are paying 71500/- per month. agreement 6 years.per year 858000/-.

        please provide service applicable or not.

        mail id : surendrachowdary1982@gmail.com
        mob no : 984854687.

  9. Hi,

    I have hired a company to create an mobile app and they said if I have my own registered firm, then the tax would be just 4% and if I am an individual, it would be 14% service tax.

    Please suggest me if I need to register my company or is there any other alternative for this.

    Thanks in advance.

    1. There is no any reverse charge in IT related service. Ask them under which service type ( Name of service) they are charging you bill. Service tax will be 14% no matter you are individual or Company. Corporate form needs so much compliance and higher tax rate. Better is continue with proprietorship until your turnover goes high.

  10. Dear sir, I have sales RO plant to government offices. Service tax and TDS is applicable for me or not. I have purchased raw materials and give RO plant.

      1. ma’am we are turnkey contractors pvt ltd company and receive the Transport service from various transport agencies. The service is received inclusive of Service tax but not shown separately in the bill. Someone informed us that to be on safe side we should deduct 4.2%. I want to know whether this 4.2% is flat, 4.2% on the value or the Value shall be considered to be inclusive of 4.2% and the payment shall have to be made say if 202000 is the Bill value we shall directly deduct 4.2% and then make payment to the transporters

      2. Your company is required to pay service tax on RCM basis.The GTA is not required to charge service tax on bill. If they are charging, tell them not to charge if the transaction is covered under RCM. You are required to pay service tax at 4.2% on bill. Suppose the bill is 200000. Calculate service tax on that amount. Read my post for more information. It will help and get detailed guidelines for gta service taxability. https://taxmasala.in/service-tax-on-good-transport-agency-gta-9-important-points/

      3. Mada, what is the service tax rate is for Installation along with accessories (Erection & Commissioning)

  12. Hello madam, can you please tell me how much is the service tax for marriage halls?

  13. I am carrying Erection and Commission works. My Contractee has mentioned as hereunder. Is is correct. Pl suggest

    In the case of partnership company while carryout of erection work inclusive of materials (Consumables & Electrodes etc) The party has to claimthe service tax 50% on 40% of Service Tax. i.e only 2.8% instead of 14%.

    Charges @10% of the order value against mobilization of manpower and tools & tackles =Rs.340000
    Service Tax App. is @ 14% on 40% value of mobilization advance (Rs.340000)= Rs.19040
    Service Tax @ 14% on 50% of Taxable amount for service receiver (NotificationNo 30 / 2012) (Rs. 9520)
    Service Tax @ 14% on 50% of Taxable amount for service provider (Notification No 30 / 2012)

    1. If you are partnership firm and providing service to company, rate of 2.8% is correct.

      Rs. 9520 is required to charge in bill and remaining Rs. 9520 is required to pay by company itself.

  14. Hi ,

    We had booked an apartment 2 years ago and this is nearing completion now . The Builder has sent us a demand for payment of service tax @ 3.5 % on the flat cost . Is he right in charging us ? Cause I thought we are buying a property and not receiving any service .

    1. If you are not purchasing ready made flat, service tax will be applicable for construction service.

  15. If service provided before june 2015 half off the amount paid in june than what is the rate ? and amount paid in may itself @12.36% S T for that may i receive the service in june and onwords…..

  16. Have to pay now ( in July 2015 ) Balance of service tax on short payment made in March 2015. What rate should i charge 14% or 12.36%”

  17. A Company has given work order for drilling at mines site and also give core box set [measuring of drilling depth], charges for drilling Rs. 4000/- per meter & 1000 for core box supply @1000/- per nos. how does prepare bill by party of service tax and how many liability of service provider and service receiver,please give as example through billing formate .

    1. Service tax at 14% on drilling activity at Rs. 4000 and for core box supply, vat will be applicable as per your state vat rules.

      Segregation is better in this case.

  19. GOODS TRANSPORT AGENCY ( GTA ) SERVICES — WE ARE RECEIVER OF SERVICES FROM GTA — WHAT IS THE ABATEMENT % AND WHAT IS TAXABLE %

  20. We are a Pvt. Ltd. company and we had hired cars for our official. Payment made is Rs. 37,800/- in May 2015 & RS. 6975/- in July 2015. What will be the Service tax / RCM liability.

    1. For payment made before 1st june, rate is 12.36% and for payment made in july 2015 and invoice raised after july 1, the rate is 14%.

      RCM will be applicable if you receive service from individual, HUF, partnership firm, AOP, BOI.

      The RCM rate is 50% of service tax rate if value is non abated and 100% if value is abated.

  21. We are a C & F agent of a company .We have a agreement where service charge is fixed an amount of Rs.40000 per month including Godown rent for Rs. 12000/- month. In this condition how much Service Tax charged upon us.

  22. Hi ,

    I am a work contractor and does the small maintenance works of the Hotels. I had provided a service of transporting of debris waste from the hotel premises to the dumping area. So can you please help me to understand in this scenario what would be the Service Tax I need to apply on the Net Amount ?

  23. hii.. Good Afternoon .

    my question about transport good by rail service .

    If I provide service to customer and my transaction value is 10,00,000/- in 3 month for provide the service.

    10,00,000/- Value
    (Less) 7,00,000/- 70% abatement value
    —————–
    3,00,000/- Taxable value
    ———————–
    ———————–
    42,000/- 14 % service tax
    840/- 2 % Education cess
    8.40/- 1 % 2nd Edu cess
    —————-
    42,848.80/- payable service tax in 3 month…

    The calculation Is Right or Wrong………….??

  25. if i have the flat and i given the flat on rent then what is service tax rate applicable ? 14% or else

  26. How to Calculate the Penality if returns are not filled..

    We ded the tds for Mar’15 (TDS Rs.30,000) and Deposited the same at 24.04.15, but we forgot to return the same till date.

    What is the Penality amount……

  29. Kindly let me know the interest rate for delayed payment of service tax for the year 2014 -15 & 2015-16

  30. can any one tell me in hotel industries cenvat credit is available or not

    1. Yes, cenvat credit is available to hotel industry but you cannot avail abatement while using cenvat credit.

  32. I wanted to know that service tax on postpaid bill of mobilephones are charged on the total bill or 40%of the total bill? Please help me out over this…..

    1. It depends on the calculation and cenvat credit availability of service provider. Generally it is 14% on total bill.

  33. Service Tax is aplicable for Commission On Brokerage..

    If applicable then how to ded the TDS on Commission On Brokerage ( Eg. Rs.100000/- Commissioon & S.Tax@14% = 114000/-)

    On which amount we calculated the TDS (On 100000/- or 114000/-)

  34. Service Tax is Applicable on Electronic Media, ?? if yes then can i get a reference note.

    Thanks
    Sunil

      1. Actually Our’s is ad agency, we have deducted service tax for client (Hospital ad) , but one client’s CA informed that service tax is not applicable on our service.

        Paper Advertisement
        TV Advertisement

      2. Hiii mem.. I m providing advertising services… What is D effective rate of service tax?

  35. Hi,

    I am currently working in an IT company, so i was supposed to purchase some licensed software. i found out a vendor- he is charging 4% VAT and 19 % Service Tax, i am not sure why he is charging me 19% of ST as the rates for service provided is 14 % only.

    1. If you are purchasing inbuilt software, vat is required to charge. Service tax should be charged only if you get developed software as per your requirement.

  36. Hi,
    Mam, can you send me these service tax details in a pdf formate because i want to learn it, i am new in accounting profile…so please

  37. hi madam
    i am working of Construction of building so i want to know in transportation of goods we rec. a bill inculding service tax . so we get a service tax credit or not

    1. You can get cenvat credit for service tax paid on transportation service IF you do not opt for abatement scheme.

  38. WE ARE IN BROADCASTING SERVICES AND WE ARE USING MAN POWER SUPPLY FROM A SECURITY SERVICES BUT THEY HAVE NOT CHARGE THE SERVICE TAX SO WE ARE LIABLE IN REVERSE CHARGE OR NOT

    1. If you are corporate and receiving service from individual, huf or partnership firm, you are liable to pay service tax under RCM.

  39. mam im a goverment civil contractor at pwd department so how many service tax payable from side…give example plz

    1. It depends of your construction work. Service provided to government for certain construction work is exempt. Please refer mega exemption list of service tax.

  40. hi

    service tax service provide before June but invoice issued after June .. so servicer tax on transport of goods 3.09% in before june (12.36% on 25%).. same will applicable also now

      1. HI

        service provide & invoice date also before June but invoice came by delay now .. example 15.05.15 , 14.03.15 & 15.12.14 these invoice date which tax to applicable in this case

      2. HI

        service provide & invoice date also before June but invoice came by delay now .. example 15.05.15 , 14.03.15 & 15.12.14 these invoice date which tax to applicable in this case

        ST on GTA = 12.36 on 30% or 12.36 on 25%

  41. Please sent me an example of how to calculate service tax now on different services

    1. Sir due to time constrain, we cannot send the example of each service. However, you can ask for particular one service.

  42. Our concern is Proprietorship doing fabrication work on contract basis.We are incurring transport charges for the goods received.The service provider is sending bills without mentioning service tax separately in their bills.They are individual transporters.I would like to know (1) who is responsible for the service tax ? (2)Will the reverse charge mechanism be applicable for us ? (3) Kindly inform me our responsibility towards service tax ?

      1. HELLO MEDAM I want to know abour. works contract service tax. 5.6% .. ( when I will prepair bill . How to put s. tax. amt. in bill . exp. ( sales amt. 100000/- X 5.6% = 5600 /- ( 100000+5600) = 105600=00

      2. Service tax rate for work contract service is different as per type of work contract.

        Rs.100000 is service provided – income

        Rs.5600 – service tax collected – liability

      1. Madam, I want to know , the Visa purchases from Visa provider company & paid the service tax, Then i sale the visa with adding my commission then I will be payable to service tax? what is the rate for that?

      2. Service tax is chargeable on commission portion at 14%. However, I need clear question to give answer.

  44. We have give work order for road construction work to contractor. what will be liability of service tax ,service receiver and provider and also deduct tds @2%& 2% wct will applicable.

  45. According to my research the rates of Service tax payable on rent a cab services seems to be 5.6%(according to notification issued by CBEC (Notification No. 30/2012-Service Tax ) wherein only non abated Service tax has been changed to 50% (reverse charge ) and abated value tax is still payable by service receiver – 100%

    1. What im trying to say is that service receiver and not service provider is liable to pay service tax of 5.6% in case of rent a cab services

      1. Yeah, I have corrected. Thanks. It is typing error. I have written amount in right column instead of left.

  46. Hi Mam
    Have a nice Day
    i have a manufacturing company and i get a freight bill i want claim service tax credit as per partialy reverse charges rule please send this information on my mail id joginderlalita1327@gmail.com with example.

    Thanks & Regards
    Joginder Singh

  48. I have mobile rep. computer rep. and cyber cafe service and invitation card printing work in rural area under one shop roof. do i need registration forservice tax. or TIN no.
    i also planning to sell spare parts for mobile and computer.
    Help me

  49. I am a proprietor and renders education services. We send teachers for home tutions. Please let me know the following
    – Service tax is applicable on tution services or not
    – Revenue limit for service tax applicability
    – Is abatement is available and will fall other categories. Is it is 4.2% on total bill value?

  50. mam please clear the 1% tds rate of individual and 2% of other. please conform the individual and other.

  51. We have given work order for civil jobs for muroom supply,transporting,spreading of road work.This road is in our mines area. Contractor has not added service tax in their invoice.What will be our liability of service tax and party.It will be civil work or work contract. Please give brief as example.If invoice Amt.1000/- what will be service tax of part of party and our a/c.

  52. HI WE ARE IN THE AREA OF MINING BUSINESS AND WE OWNED MANY COMMERCIAL VEHICLE . WE GOT REPAIRED THE VEHICLE FROM LOCAL GARAGE , WOULD WE PAY THE SERVICE TAX ON THE AMOUNT PAID FOR REPAIR MAINTENANCE UNDER “RMS” PLZ ADVICE AND WHAT WILL BE THE RATE OF SERVICE TAX

  53. Hi We are the consultants for professional training s , registered as firm. We issued a bill with service tax@ 14% ( Rs.73000+10220=83220) to our customer as on 02.09.15.
    But the payment is doubtful from the customer,Due to the training feedback was very average. Then we have to pay the service tax or not for the above invoice.

    If the invoice amount rejected by customer after we pay the service tax then what is the solution.

  54. Dear mem,
    i Started Advertising Pvt Ltd Company so please Provide full details of Service Tax.

    1. Service tax rate for advertisement service is 14%. However, you can avail cenvat credit. NO abatement available.

  55. Ma’am,
    i am working with a construction company, we have a vendor who is regesterd with service tax and he provides us his roller and JCB on hire and charges 14% service tax, is he charging the correct service tax?, is there any RCM ? and should i deduct the tds @ 2% on the basic service we have received.

  56. HI,i am a service receiver,what is the new service tax % for Transport of good by road,and explain the new calculation formula.

  57. Hi,There seems to be a typo in the chart above : For GTA/Transport of goods by road, abatement should be 70% instead of 75% and effective tax rate should accordingly be 4.2%.
    I must add that your blog is superb, and your helping nature makes it the best.Thanks and my regards…

    1. Hi,

      Thanks for appreciation and pointing mistake. I have amended it.

      It is my pleasure to help others in tax matters. Still have some time constrain.

  58. Dear madam I am a waterproofing contract we do new construction waterproofing in which we charge VAT flat 5% on total and service tax 5.6 % flat on total ( under composite scheme) is it correct ?? also maintenance waterproofing work we appky VAT flat 5% on total and service tax 9.8% on 70% of total ( under composite scheme) is it correct ?? Please explain VAT and Service Tax under composite scheme , we get material under 12.5% VAT and we apply 5% how can we get remaining 7.5 %

    1. Why are you charging 5% vat when you are purchasing at 12.5%? Charge at 12.5%. Service tax rates are corrrect.

  59. Please note as per Notification No.08/2015 dated 01/03/2015 the abatement rate is 70% on Services of Goods Transport Agency in relation to transportation of goods.

    1. I have already updated it yesterday. But due to some problem, update was failed. Now, it is correct.

  62. Hello Madam

    Please advice on tax rate if invoice date is 31/05/15 and tax paid under reverse charge @ 12.36% on 06/06/15 , but payment to service provider dt. on 12/10/15 is there liability of diff amount between 14% and 12.36%.

  63. Hi Admin,

    How much service tax rate on engineering drafting and designing services. Is service tax rate includes education cess too?

  64. Hello,I would like to know whether we can levy the input tax credit of service tax and deduct it and then can we pay ?

  65. Hello Madam,

    Getting an opportunity to provide Installer Team (Manpower) for a Telecom company. I will pay my team of installers and should invoice the Telecom Company. The work is related to replacing Antenna in Towers. Should this service be Invoiced with Service Tax? Please note i haven’t registered any company yet, as a trial wanting to try it as an Individual. In some articles i read upto 8Lakhs no need to charge service Tax. In some site i read that due to the reason the subscribers pay for the service tax there is no tax involved for my activity. Can you please clarify these points and provide Taxation applicable if any (if it exceeds 8Lakhs of Turnover)

  66. Dear madam
    What is the service tax slab for a lodging business and if the room tariff is fixed more than thousand rupees.

    1. Service tax rate for hotel is applicable to your service. There is separate rate for hotel without food supply and hotel with food supply. Please note that.

  67. mam…i looking for man power requrtment agency……for this witch kind of documents need…plz help me

  70. Madam,. If bill amount is 1500000 including service tax then how to calculate the main bill amount. what will be it. Please tell me.

    1. Ask service provider about rate of service tax.

      Main bill = total bill/ 100 + service tax rate * 100

      Suppose service tax rate is 14%

      Mail bill = total bill / 114*100.

      I hope you got it.

  73. Is Engineering and Design services in relation to construction of roads and Bridges get any exemption for payment of service tax ?

  74. Ma’m If me received Labour service bill before Swach bharat cess 0.5% on date 15-Nov-2015 and i payment to party how many service tax provide to me behalf them payment.

  76. Dear madam,,,
    what is the service tax in case of sale of property towards paying service tax on commission

  77. I have a Hotel in Punjab state. the room tariff is between Rs. 700/- to Rs. 1100/-.
    Please note – I am just renting rooms only, No restaurant and any other services like BAR, banquet etc.
    My total income from hotel business is approx Rs. 5 lakh in a FY and it is less than Rs. 10 lakh in a fianacial year.
    Is service tax applicable on my entity business.?? Plz advice.

  78. Mam, can you send me these service tax details in a pdf format because i want to learn it, i am new in accounting profile…so please

    1. No, sir. It is not possible to send each one details in pdf. However, I will enable print option so that reader can get print of article.

  79. Dear Madam,

    Regarding Service Tax Excemption, (Taxable Service – Construction other than residential complex)
    I register service tax on 5.6.13. we have not filed ST3 till now.
    Kindly let me know the procedure of filing of the service tax of the below details

    Aggregate Value of FY2013-14 – Rs. 15,00,000/-
    Aggregate Value of FY2014-15 – Rs. 6,00,000/-
    Aggregate Value of FY2015-16 – Rs. 4,00,000/-

    Did i utilize the exemption for the year 2015-16

  80. Hello ma’am
    my question in case of service provided by lawyer, at what amount TDS should be deducted if service tax in not separately charged by them in their Invoice?

  81. Dear Madam,

    Please suggest me about service tax rules, like who is eligible to pay ST in this condition
    1) ours is milk dairy ( having directors and share holders – means ltd company)
    we are receiving ( we are service receiver)services from one firm and he is applying full tax that 14.5% Service tax, now we in confusion like does he eligible to claim 100% service tax or we are eligible for 100% ST to pay the govt.

    Please related this and manpower, security service, works contract, directors seating fees, staff vehicle( renting by outside person-he is not registered ), legal service for all this kind of service please provide the notifications and any kind of proof to pay tax

  82. Madam,

    I am in the process of building a small 2 storied house for living myself with my family on the land purchased by me few years back.
    For construction , I have hired a architect & contractor. The architect has charged me 14 % service tax on the fees paid to him (his fees -> 5 % on the cost of construction assuming Rs 2500 psf fixed rate of construction.) Total carpet area is 2221 sq ft + terrace. The contractor is also charging me 14 % service tax, on the 70 % of the total of the services provided to me. (It will also include the subcontracting services he is going to hire). I have read that there is service tax exemption in case of building own house.
    Do I need to pay any service tax at all (to both architect and contractor) ?
    If yes, how much I have to pay ?
    Isn’t it is for contractor to pay the service tax and not me ?

    Thanks & Regards

  83. Hi, i am working in private limited co. our company appointed one of our employee through one recruitment agency. This recruitment agency don’t have service tax registration as their business volume is less than 5 lakhs per annum. Recuitment agency submitted their bill for placement purpose. My question is do we need to pay service tax on RCM basis. if so, 14.5% (RCM) we will pay to service tax dept on or before 5th March 2016. then when we can take input service tax 14% claim (i.e can we adjust while paying for Feb or after march 5th payment only we can avail this) please clarify

  84. Hi am a civil contractor…Could you please help me on my doubts…

    if am doing a new residential construction work ( start to end ) how much ST should I charge..?
    If am doing a new residential construction work ( partial, ie; some volume of works were done by some other contractors )…in such case how much ST I should charge..?
    In both these cases am doing for individuals only…

    If the same type of works doing for some corporate companies…how much should I charge…

    Will be great if you could answer these..

  85. Mam
    I have installe and supply of ro plant as diff diff sites which type off department are applicable for us sale tax service tax or others i have only pyrchage plant and install plant for government tenders

  86. Respected Madam,
    I have purchased a ready to shift Flat in a multi story township at Jaipur.
    Builder has provided me compilation certificate issued on his letter pad and his civil engineer.
    Further he has applied to JDA for adhiwas (resident) certificate well before agreement date.
    In agreement he is using the draft format as it was used by him at the time of project starting. I have regularly objected for charging Service Tax. But at the time of registration builder is asking to pay service tax.
    As per rules there is no service tax applicable on ready Flat or houses.
    In this situation what remedy is available to me.
    Kamal Kumar Soni

  87. Gas agency providor takes Visit Charges and Admin Charges from Customers is he liable for Service Tax

  88. Dear Ms Tarannum-I’m the President of a resident welfare association (RWA) for a villa layout. The association charges residents monthly maintenance fees for security, trash collection, landscaping & layout maintenance, sewage treatment, etc. With 2-3 exceptions, this is way less than Rs 5,000/mo per villa. But in the same invoice we also charge for water which is procured by the association through tankers and supplied to all residents through a common use storage, pumping & distribution facility. If the water charges are added, the monthly amount for many villas exceeds Rs 5,000/mo AND in any FY the total amount payable by such villas exceeds 10 lakhs. Does this mean RWA has to file Service Tax Returns and start charging service tax to such residents? Can RWA claim Pure Agent status as far as water is concerned? If ST is indeed payable, 14.5% effective Nov 2015? Can CENVAT credit be applied? What happens to earlier FYs? Will penalties and interest be applicable from the time ST was applicable to RWAs until we file for the first time? Thanks in anticipation. SHARAD

  89. Madam,
    I am a pvt. ltd. company. I am going to provide IT support and SMS service to schools. May i entitled for service tax exemption under article 66 D(L), Negative List of services. If not, what would be the percentage of service tax if gross income exceeds 10 lack from different schools in a financial year.
    Regards,
    Niranjan pd. singh

  90. Hi Tarannum,

    Now in this budget the service tax has been increased to 15% after adding the Krishi Kalyan Cess. Can you please let us know that now how much would be taxes on the travel services that you have mentioned on the website. An update on this page to new rates, will be appreciated.

  91. Hi.
    Meri shuttering shop hai . Kya is par koi tax hai. Agar hai to Kya . aur uski llimit btae .

  92. If tariff is Rs.650 per day and stay 3 days in Hotel Room, total collection Rs.1950/- then what tax will be charge ?

  93. my company provides cabs for transfer of goods ..how much tax should i charge on bill ? And what do i have to pay to government?are there any amendments?

  94. what is the rate of service tax on conveyance of house hold goods carried by a defence personnel through a transport agency. how much he should pay for a invoice of Rs 100000/-

  95. one of may customer supplier man power for the outdoor carting but is not charges service tax , it is come under the RCM , shall i have to deduction the service tax amount from the supplier and paid to goverment.

  96. Dear madam i have applied for service tax in march 2016 so when shall i file the return

    1. Service tax return is required to file half yearly. So you are liable to file service tax return in April, 2016.

  98. Dear madam kindly clearly me as resort if gate entry pass is issued and some money is collected from customer than service tax is applicable or not if applicable than what rate is charged from customer

    1. Please suggest me.
      I am transpoter & I have 30 lac tourover. But my party paid service tax on that bill.Yet I have not service tax no. But due to some reason I will have to register in service tax. Please tell me in that condition will I pay receive tax after registration.

  99. Dear mam ,

    I am working as junior accounts executive in a Pharma Manufacturing unit. I have a confusion regarding service tax reverse charge mechanism.
    Our company usually file service tax return as “service receiver” i.e. if we received any type of service we usually pay service tax on it on abedtment basis and take the 95% of credit on excise return as cenvat credit. Is the whole procedure is Ok…? Please guide accordingly

  100. we r proprietorship firm carrying on construction work under WCT in mumbai.
    How much VAT & service tax should be charge? Our client is listed co.
    Is 50:50 ratio is ok for service tax (i.e 2.9% + 2.9% = 5.8%)

  101. Hi My name is Sarvesh Pandey , We are a service provider with Pvt. Ltd. com. Kindly advise about below issue

    We have raised the bill our client rs. 10000+ ST =11450/- but Client is not ready to released the payment. We should be pay the service tax or not.

  102. I have mentioned earlier on 16,February,that I am providing IT and SMS service to schools.Is any service tax chargeable on these services to schools,though school( vocational service) is exempted from service tax.

    Niranjan prasad singh

  103. Hello Mam, My client is a pvt. ltd. co. (manpower supply) providing services to various educational institutions, hospitals etc, whether service tax liable on it

  104. Hello Sir/Madam, My works is fabrication & erection ,labour supply etc, whether service tax liable on amount.

  105. Hello Sir/Madam, My works is fire bridge ,labour supply etc, I registered in works contract service
    category so how to calculate service tax of f.y.2015-16 and f.y.2016-17

  106. Hi, I am planning to rent a marriage hall in KARNATAKA. Rent approx. 50k . How much service tax/ luxury tax or any tax should I being paying

  108. P Panneerselvam, Mobile 9442632146, J410, The Royal Castle, Thirumudivakkam, Chennai - 600044 says:

    I own a Flat at Chennai suburban area. The Carpet area is 900 SFT and super built up areas is 1216 SFT. I had entered into a Maintenance Contract for a period of 3 years with the Developer’s Maint Wing. A Service Tax of 14.5% charged from me. The prevailing rate is Rs. 2.50/SFT on the super Built Area of 1216 SFT. The Agency is not showing the Tax portion at the receipts being issued by them.

    I would like to know whether the Service Tax claimed from me by the Agency is in accordance with the Law.

  109. Hello Tarannum, I am having a small company which provides accounting services to clients both Local and offshore. How much should it be. the service tax?

  110. I am doing jobwork of Anodising & Powder Coating wherein our customer is sending us Aluminium profiles for coating purpose & after coating we are sending back the same to customer. We are purchasing raw materials for Anodising & Powder coating as Chemicals for cleaning & colour powders for coating. Currently we are charging Vat @5.5% on 75% of basic/net amount & Service Tax @14.5% on 70% of basic/net amount under work contract. But so much customers are asking that we have to charge service tax on 25% of basic/net amount as we are charging vat on 75% on basic/net amount. Taxation is in Karnataka. can you update correct taxation ?

  111. Railway earn Advertisement earning of Private Party &
    Railway earn license fee again station premises refreshment room
    both case service tax applicable or not if applicable which rate

  112. we are in other contract and maintenance contract SERVICE, please help me to work out both vat and service tax under composition scheme for this kind of services.

  113. Dear Madam,
    We are manufacturer unit. We have remitted payment to foreign co.in Indian rupees.
    I want to calculated service tax on remitted amount for intellectual property rights other than copy right services head but I am confused on which amount I will calculated actual amount plus TDS amount or only actual amount. Kindly advice me.

  114. mam, pls tell calculation of service tax on Sponsorship fee amount is 1,35,000/-

  115. we are air travel agent having service of air ticket,business auxiliary,tour operator and rent a cab.o if we will go on commission basis then what is the rATE OF SV TAX

  116. We are engaged in hire boat and manpower supply underwater and inland water.What is the rate of service tax and abatement

  117. Dear Madam
    I am Mutual fund adviser and my brokerage more than 10 lakh so what is the method of service tax payment to current situation and Can we apply service tax number ?
    Please replay.
    Thanks

  118. DEAR MADAM,
    WE ARE TRADERS, WE HAVE PAID COMMISION ON SALE THIRD PARTY [ FOR EX. WE SELL GOODS TO X, ON BEHAFE OF Y. WE BILL DIRECTLY TO X AND HE PAID PAYMENT DIRECTLY TO US . THE COMMISION ON THIS IS APPROXIMATE 75000 SO THER IS ANY LIABLE ON S.TAX ON THIS COMMISION

  119. Dear Madam,

    We are buying software’s form outside India for R&D purpose and remitting the payment through Bank after deduction the TDS , My question is software purchase form outside India will come under RCM ( i.e Import service ) ?

  120. My request is to know what is the penalty for late filing of ER 5 and ER 7 returns for the year 2014-15. The assessee filed those returns on 13-08-2015 and 10-08-2015 respectively instead of 30-04-2015. So i request you to mention the penalty for late filing with relevant rule position.

  121. Madam, we are paying commission to people. Do we need to pay Service tax on this on reverse charge mechanism?

  123. Dear Madam,
    I am individual service provider and have total turnover of 15 lacs for providing manpower service. I am aware that upto 10 lacs I am exempted from paying ST but in my case do I need to pay ST on remaining 5 lacs?

    please guide.

  124. I am Rajsthan Govt.Employee. In Financial Year 2016-17 what would be the Group Insurance Service Tax rate if the Group Insurance Premium for year one time is 220 Rs. Deduction ?
    what would be the amount of Service tax?

  125. What is the rate of service for Ethanol or Sugar transportation by road for FY 2015-16?

  126. If tour arrangements done for travel in India for a group in USA in Dec 15 (Inbound travel) and received foreign remittance towards the same. What will be the service tax applicability on the same?

  127. i have paid service tax – with out interest, my doubt is ST dept. ask interest on interest ? if appicable interest on interest how much?

  128. i am govt civil contractor doing repairs and maint works our actual labour part is works out 23 to 25% which shows in IT return now by what rate we should pay our service tax

    we are filing sales tax return (wct ) pl guide

  129. Hi Mam,
    I have purchased a flat which is under construction as of now..In Feb 2016 builder has sent a demand letter where the service tax was mentioned to be 3.50 %
    But now in Apr 2016 another demand letter is received but the Service tax is now mentioned as 4.2 %
    Property cost is 31lakhs.
    Is this correct? I have read somewhere that the new service tax (15%) will be applicable from 1st June 2016
    I am not sure how the builder has increased service tax from 3.5 to 4.2 %
    Please help
    Many thanks..

  130. i am canteen contractor in bank premises. kindly tell me that what rate we should pay our service tax.

    1. Atmakuri Ramaguravaiah Accouts Manager Swarnalatha spintex Pvt Ltd Hanumanjunction says:

      Dear Madam please send me for latest tax rates and what are the exemption goods on service tax kindly tell me detail information

  131. suppose an inbond tour operator provided services in abroad and recd pymt in inr or usd in co. bank account in India……….then should we pay service tax on these kind of services?
    Please specify………..Thanks

  132. Dear Mam,

    We have given car on rent for transfer of employee to PVT LTD co.
    How many % S.tax will be applicable on this service.

  133. Hi, We provide service of electric device fitting as a partner ship form. please suggest me the if service tax applicable or not. and we do have work contract with our client. what is work contract meaning as per law. please suggest. Thanks and regards.

  134. Hi we are RWA(SOCIETY ) TURN OVER LESS THAN 10 LAC ,Security provided is also less than 8 lac .he is not claimed service tax on bill. pl tell him we are under reverse Tax mechanism or not. who will be paid service tax.

  135. hello mam i have to ask about service tax my co. is techahead software pvt ltd they receive a service like coffee services , building maintenance services , and give rent for the office building and that rent co. charges a service tax to my co. my co. give the services like android app., ios app., its a technical co. provide software can i take input for our co. purchase a services like coffee , rent , office building please reply and give the entry of services sale and services purchase

  136. how to calculate of service tax on maintinance & instalation service (auto parts installation service )

    1. is there is any circular for service tax rate 4.35% on other than tour operator from 1st of April 2016. And under other than tour operator(1.45%) which services are there .

  137. Hi Mam,
    I have purchased a flat which is under construction as of now..In Feb 2016 builder has sent a demand letter where the service tax was mentioned to be 3.50 %
    But now in Apr 2016 another demand letter is received but the Service tax is now mentioned as 4.2 %
    Property cost is 31lakhs.
    Is this correct? I have read somewhere that the new service tax (15%) will be applicable from 1st June 2016
    I am not sure how the builder has increased service tax from 3.5 to 4.2 %
    Please help
    Many thanks..

  138. For hotel and guesthouse without supply of food what is the rate applicable form 1st of june 2016

  139. As per chart mentioned above towards construction service the rate of service tax will be 4.35% i.e 30%*14.5%, i think it’s a clerical mistake…pls update the same.

    1. Thanks Sujoyji for bringing my attention toward this error. Thanks for reading carefully.

  140. dear mam
    can you tell me that what is the breakup of service tax for transport from 01.06.2016 what we have to dedute from clients my email id is skumar1579c@gmail.com & what is notification no for filling the service tax return

    1. Sanjeevji,

      New rate will be 15% including krishi kalyan cess. I ll update article tomorrow.

      I request all readers to dont mention email, mobile number, address, tax numbers or other personal information in comments. ( For online safety purpose). I only reply through comments and never mail anyone.

  141. Dear Mam
    Can you provide me the definition of tour operator service? if our client provide only accommodation with meal then is it cover under tour operator service? Rate of Service tax for tour operator?

    Thanks & Regards

    Sumit Lal

  142. Madam, I have leased my immovable property for commercial use for RS.1.20 lacs per Month.. Am I liable to collect service tax from leasee? How much?

  143. I want to know the abatement rates for the following categories since 2011:
    Services of air-conditioned restaurants
    Hotels
    Caterer
    Clubs
    I would be grateful if you can help

    1. Nikita,

      I wish I can help but it is difficult to search and provide all the rates together. However, You can find FY 2016-17 rates from above chart.

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