Service tax %

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MANIKANDAN

MANIKANDAN (Querist)
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01 June 2015 service tax 14% or 14.42%

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 June 2015 Revised Service Tax Rate of 14% will be applicable from 01.06.2015. There is no breakup of 14%. Swachh Bharat Cess of 2% not applicable as of now. Refer Notification No 14/2015 Dated 19.05.2015 and department clarification from link given below, which is self explanatory:

https://www.caclubindia.com/forum/files/555789_20150519211107_notification.pdf

https://www.caclubindia.com/forum/files/555789_20150519213343_tru_letter.pdf

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 June 2015 Switch over to new rates.
To simplify:-

Rule 4 of Point of Taxation Rules change in effective rate of Service Tax:

There are three events that occur in connection with a service

A. Issue of Invoice
B.Payment received
C. Provision of Service

If any two out of the three events have occurred on/before 31st May, the old rate of 12.36% shall be applicable.

If any two out of the three events have occurred on/after 1st June, the new rate of 14% shall be applicable.

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