20 May 2015 thats what i am saying that 14% is inclusive of cess so according to me the service for tour operator ( transportation = 5.60% and on package tour=3.50%)
pls check and correct me.....

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CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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20 May 2015 the 2 % swach bharat cess wil b extra... stil cant say 100 % .. its good to use 14 % til than... and once notifcation wil b there.. then i wil comment on this post again

Abhay Sikerwar

Abhay Sikerwar (Querist)
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20 May 2015 from 1 June its 14 % why we will think and look for the future notification if its comes so we will charged accordingly.....and i have asked the service tax rate for Tour operator and we are discussing on cess of 2 %

Asha Kanta Sharma

Asha Kanta Sharma

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04 August 2024 The service tax rate changes effective from June 1, 2015, are as follows:

### **Service Tax Rate Changes Effective June 1, 2015**

1. **Standard Service Tax Rate:** The standard rate of service tax was increased from 12.36% (which included 12% service tax and 0.36% education cess) to a consolidated rate of **14%**. This new rate of 14% does not include any cess for the Swachh Bharat Cess, as it was notified later.

2. **Swachh Bharat Cess:** Effective from November 15, 2015, an additional Swachh Bharat Cess of 0.5% was introduced on the value of taxable services. This brought the total rate of service tax to **14.5%** (14% service tax + 0.5% Swachh Bharat Cess).

### **Specific Rates for Tour Operators**

For tour operators, the service tax rates were distinct based on the nature of the services:

1. **Tour Operators – Package Tour Services:**
- For package tour services, the effective service tax rate was **3.50%** on the value of the package tour. This is under the category of "Tour Operator Service" and the rate includes both service tax and education cess as per the older regulations until the new rate was applied.

2. **Tour Operators – Transportation Services:**
- For transportation of passengers, the service tax rate was **5.60%** on the value of the service. This rate is applicable when the tour operator provides transportation services.

### **Clarifications:**

- **Inclusive of Cess:** The 14% service tax rate effective from June 1, 2015, was not inclusive of any cess. The Swachh Bharat Cess of 0.5% was applicable separately from November 15, 2015.

- **Future Notifications:** Any additional cess or changes after June 1, 2015, such as the Swachh Bharat Cess or other changes, would need to be considered in addition to the base rate of 14%.

### **Summary:**

- From June 1, 2015, the new service tax rate is **14%**.
- For package tours provided by tour operators, the rate is **3.50%**.
- For transportation services provided by tour operators, the rate is **5.60%**.
- Swachh Bharat Cess of 0.5% is applicable from November 15, 2015, making the total rate **14.5%** (including the cess).

You are correct that the 14% rate itself does not include any cess, and it is essential to refer to future notifications for any additional cesses or changes.