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Service tax rate on event management services

Atanu Bagchi (MBA) (29 Points)

25 March 2017

i found in google that on the service of event management service is ST @ 10% of service valus+ @ 2% Edu Cess on service tax value + @ 1% Higher Edu Cess on service value, its totally different from 14% ST+0.5% SBC+0.5% KKC .......i need to know the the reason behind it......?

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5 Replies

sandesh (Accountant) (56 Points)
Replied 25 March 2017

Normal service tax is 15%

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Atanu Bagchi (MBA) (29 Points)
Replied 27 March 2017

i know the normal ST rate is 15%..................thanks for that but my question is not that

Aarvi Solutions (8 Points)
Replied 27 March 2017

As mentioned on google the rate of 10% was when service tax was made applicable on this servics as on 16.08.2002
but as of now it is 14%+0.5%+0.5%

Atanu Bagchi (MBA) (29 Points)
Replied 27 March 2017

I FOUND THE RATE ON THE WEBSITE OF CBEC, I WANT KNOW THE REASON BEHIND IT.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185376 Points)
Replied 27 March 2017

A) Date of Introduction:

16.08.2002 vide Notification No.8/2002-ST, dated 01.08.2002.

(B) Definition and scope of service:

(i) "Event Management" means any service provided in relation to planning, promotion, organizing or presentation of any arts, entertainment, business, sports, [marriage]* or any other event and includes any consultation provided in this regard;

(Section 65(40) of the Finance Act, 1994)

(ii) "Event Manager" means any person who is engaged in providing any service in relation to event management in any manner;

(Section 65(41) of the Finance Act, 1994)

"Taxable Service" means any service provided or to be provided, [to any person], by an event manager in relation to event management.

(Section 65 (105) (zu) of the Finance Act, 1994)

(C) Rate of Tax & Accounting Code:

	Rate of Tax	Accounting Code
Service Tax	10% of the value of services	00440197
Education Cess	2% of the service tax payable	00440298
Secondary and Higher Education cess	1% of the service tax payable.	00440426
Other -Penalty/interest	As levied or applicable	00440198