Service tax payment

This query is : Resolved

anu bajaj (Querist)
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31 December 2015 is there now a flat rate of 14% on service tax that means we hv not to pay the payment amt in edu cess n higher edu cess code from 01/06/15.only basic st n swach bharat cess to be shown in challan

Ankur Singhal

Ankur Singhal (Expert)
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31 December 2015 Dear Anu
You are right from 01/06/2015 the cess and higher cess has been submerged into the tax rate itself.
so no need to show separately except SBC.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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31 December 2015
Budget 2015 has increased service tax rate from 12.36% to 14%. The basic rate of service tax is now 14% and no education cess will be levied to it.
However, swachh Bharat cess – 0.5% has been levied from 15th Nov, 2015. So effective rate will be 14.5%.

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