I got an invoice charging service tax @ 14% , and as per my information it is not yet applicable, i am confused what to do because i am in a service industries . Hence i request you to kindly confirm me when new rate of service will be applicable , what is current rate.
07 April 2015
It will be applicable only after obtaining the assent of the President of India. In my knowledge, it is not yet obtained. Charging new ate of Service Tax w.e.f 01.04.2015 until getting assent from President is not justified.
The text on ICAI Website is as follows:- Finance bill, 2015 has proposed to increase effective rate of Service Tax from 12.36% to 14%. It is wrongly reported in some quarters that the effective date of change in rate of Service Tax is 1st April, 2015. It is hereby clarified that the change in the rate of Service Tax will be effective from the date to be notified after enactment of Finance Bill, 2015.
In this regard relevant portion of D.O.F. No.334/5/2015-TRU dated 28th February 2015 is produced below:
“3.3 The Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015”.
Hence, it is worthwhile to mention that there is no change in the rate of Service Tax w.e.f. 1st April 2015.
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