Effective rate of s.tax

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Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2015 Sir,
What is the effective rate of s.tax 14% or 16%?

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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02 March 2015 presently effective rate is 12.36 % which is proposed to 14 %

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 March 2015 The service tax rate is being increased from 12% plus Education Cesses to 14%. The ‘Education Cess’ and ‘Secondary and Higher Education Cess’ shall be subsumed in the new service tax rate. The revised rate shall come into effect from a date to be notified.

So as of now 12.36 is applicable.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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02 March 2015 the calculation is 14% is inclusive of cess

14 = 13.59 % + 0.27 +.14

now 2% is swtach bharat cess so effective service tax rate after its notified would be 14 +2 = 16 %

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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02 March 2015 till Ministry of finance does not notify this rate the existting rate of 12.36% shall be applicable.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 March 2015 Tushar Service Tax rate will be 16%, are you sure?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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03 March 2015 yes sanjay bhai even if u see the budget speech jaitely said " i proposed to increase the current service tax rate from 12.36% to 14% including cess as applicable.Further i proposed to impose 2% additional swachh bharat cess on specified services.

so in my view it will be indirectly 16% for specified services.

u can refer this article by noted service tax expert pradeep jain :
https://www.caclubindia.com/articles/service-providers-be-ready-to-fulfill-the-dream-of-modi-s-swachh-bharat--23203.asp

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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03 March 2015 In this link if you read then pradeep jain to says it will be 16% for specified services.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 March 2015 Dear Tushar you must be aware cess is always charged on Service Tax so effective rate will be 14.28% and not 16%.

Just like right now service tax rate is 12% and cess 3%. So effective rate is 12.36% and not 15%.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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03 March 2015 I may be wrong but pradeep jain sir to intrepreted in same way.however lets wait for notification by govt on this issues.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 March 2015 I have already asked the question on Pradeep Sir's Article. I expect rate to be 14.28%.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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03 March 2015 Sanjay bhai i have seen many post on fb professional community and all such debates from last 2 days and most have concluded the same but ur more knowledgeable person so how can i argue with you?

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 March 2015 Argument is always welcome. It enables us to get the clarity in the matter. And I have very limited knowledge but I have the hunger to keep on learning.

I think I have raised a valid point which is based on my understanding of the matter rather than any discussion on forum. I would love to see the link of such debate so that I can get to know the point of view of other experts. Requested to provide the link of such debate.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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03 March 2015 At moment do not have access to fb in office.

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2015 THANKS SIR................

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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03 March 2015 you are welcome friend...............

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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03 March 2015 http://www.dnaindia.com/money/report-rest-easy-service-tax-rate-won-t-exceed-1428-2065634

Please check out above link. Service Tax rate won't exceed 14.28%.