CA Gaurav Gupta

As we all know Krish Kalyan Cess (KCC) of 0.50% is applicable on all Taxable Services wef from 01.04.2016 and it has resulted in Changes in Service Tax Rates. In this article we have compiled Generic Service Tax Rate Applicable on all Taxable Services, Service Tax on Non Taxable Services , Wholly Exempted Services, Rate of Service Tax post 01.06.2016 in case of Abated services, Effective Rate of Service Tax post 01.06.2016 in case of Valuation , Rate of services where alternate rate is provided post 01.06.2016 and Effective Rate of services in case of reverse charge post 01.06.2016

Also Read: No Krishi Kalyan Cess On Debtors as on 13th May’ 2016

Taxability under Service Tax w.e.f. June 1, 2016

S. no.ParticularEffective Service Tax RateEffective SBC RateEffective KKC rate
A.Generic Service Tax Rate– Applicable on all taxable services14%0.50%0.50%
 
B.

 

 

 

Service Tax Rate on Non Taxable Services 0%

 

 

 

0%

 

 

 

0%

 

 

 

– Services provided in Non taxable Territory
–   Services listed in Negative List
–  Services provided without consideration 
 
C.Service Tax Rate on Wholly Exempted Services0%

 

 

 

 

 

 

 

 

 

 

 

0%

 

 

 

 

 

 

 

 

 

 

 

0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notificaiton No. 25/2012-Service Tax dated 20.06.2012 (Mega Exemption),
Notification No 33/2012-Service Tax (SSI Exemption),
Notification No. 14/2012 – Service tax (Import of Technology),
Notification No 32/2012-Service Tax (Services by TBI / STEP),
Notification No. 12/2013 (Services to SEZ),
Notification No. 29/2012- Service Tax (Property tax in renting),
Notification No. 6/2013-Service Tax (Exemption against Focus Market Scheme Scrips),
Notification No. 7/2013-Service Tax (Exemption against Focus Product Scheme Scrips),
Notification No. 8/2013-Service Tax (Exemption against Vishesh  Krishi and Gram Udyog Yojana),
Notification No. 11/2015-Service Tax (Exemption against Service Exports from India Scheme),
Notification No. 10/2015-Service Tax (Exemption against Merchandise Exports from India Scheme)

Rate of Service Tax post 01.06.2016 in case of Abated services

S.No.Income HeadsRates Effective From 01.06.2016
Taxable ValueEffective ST RateEffective SBC RateEffective KKC RateTotal Effective Tax Rate
1Services in relation to financial leasing including hire purchase10%1.40%0.05%0.05%1.50%
2Transport of Goods in containers by rail by any person other than Indian Railways40%5.60%0.20%0.20%6.00%
2ATransport of Goods by Rail other than as specified above30%4.20%0.15%0.15%4.50%
3Transport of Passengers with or without accompanied belongings by Rail30%4.20%0.15%0.15%4.50%
4Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises70%9.80%0.35%0.35%10.50%
5Transport of passengers by air  with or without accompanied belongings in economy class40%5.60%0.20%0.20%6.00%
5ATransport of passengers by air  in higher class60%8.40%0.30%0.30%9.00%
6Renting of inns, hotels, Guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes60%8.40%0.30%0.30%9.00%
7Services of goods transport agency in relation to transportation of goods other than household goods30%4.20%0.15%0.15%4.50%
7AServices of goods transport agency in relation to transportation of household goods40%5.60%0.20%0.20%6.00%
8Services provided by a foreman of chit fund in relation to chit30%4.20%0.15%0.15%4.50%
9Renting of motor cab designed to carry passengers40%5.60%0.20%0.20%6.00%
9ATransport of passengers, with or without accompanied belongings, by a contract carriage other than motorcab or a radio taxi or a stage carriage40%5.60%0.20%0.20%6.00%
10Transport of goods in a vessel30%4.20%0.15%0.15%4.50%
11Services by Tour operator in relation to Solely of arranging or booking  accommodation10%1.40%0.05%0.05%1.50%
11AServices by Tour operator in relation to tours other than 1130%4.20%0.15%0.15%4.50%
12Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority30%4.20%0.15%0.15%4.50%

Effective Rate of Service Tax post 01.06.2016 in case of Valuation

ParticularTaxable ValueEffective Service Tax RateEffective SBCEffective KKCTotal Effective Tax Rate
Works Contract – Original Works40%5.60%0.20%0.20%6.00%
Works Contract – Others70%9.80%0.35%0.35%10.50%
Restaurant40%5.60%0.20%0.20%6.00%
Outdoor Catering60%8.40%0.30%0.30%9.00%

Rate of services where alternate rate is provided post 01.06.2016

Service ProviderServicesEffective Service Tax RateEffective SBCEffective KKCEffective Total Rate
Money ChangerServices in relation to purchase or sale of foreign currency for an amount upto rupees 100,0000.14%0.005%0.005%0.15%
Services in relation to purchase or sale of foreign currency for an amount exceeding Rs. 100,000 but upto rupees 1000,000Rs. 140 + 0.07%Rs. 5 + 0.0025%Rs. 5 + 0.0025%Rs. 150 + 0.075%
Services in relation to purchase or sale of foreign currency for an amount exceeding Rs. 1000,000Rs. 770 + 0.014%Rs. 27.5 + 0.0005%Rs. 27.50 + 0.0005%Rs. 825 + 0.015%
LotteryGuarantee payout more than 80%Rs 8200 on every Rs 10 Lakh (or part thereof)Rs 293

on every Rs 10 Lakh (or part thereof)

Rs 293

on every Rs 10 Lakh (or part thereof)

Rs 8,786 on every Rs 10 Lakh (or part thereof)
Guarantee payout less than 80%Rs 12,800 on every RS 10 Lakh (or part thereof)Rs 457

on every Rs 10 Lakh (or part thereof)

Rs 457

on every Rs 10 Lakh (or part thereof)

Rs 13,714on every RS 10 Lakh (or part thereof)
InsuranceFirst year of Policy3.50%0.125%0.125%3.75%
Subsequent years1.75%0.063%0.063%1.88%
Air Travel AgentDomestic Travel0.70%0.025%0.025%0.75%
Foreign Travel1.40%0.050%0.050%1.50%

Effective Rate of services in case of reverse charge post 01.06.2016

S.No.ServiceRates Effective From June 1, 2016
Taxable ValueEffective Service  Tax RateEffective Swach Bharat Cess RateEffecive Krishi Kalyan CessTotal effective Tax
1Rent A Cab – with abatement40%5.60%0.20%0.20%6.00%
2Rent A Cab – without abatement50%7.00%0.25%0.25%7.50%
3Manpower Supply100%14.00%0.50%0.50%15.00%
4Security Services100%14.00%0.50%0.50%15.00%
5Payment to Advocates and Lawyers100%14.00%0.50%0.50%15.00%
6Payment for Spnsorship100%14.00%0.50%0.50%15.00%
7Transportation of Goods By Road30%4.20%0.15%0.15%4.50%
8Payment to Independent Director100%14.00%0.50%0.50%15.00%
9Works Contract- For Original Works20%2.80%0.10%0.10%3.00%
9Works Contract-  For Other  Works35%4.90%0.18%0.18%5.25%
10Payment to Arbiteral tribunal100%14.00%0.50%0.50%15.00%

(The author can be contacted at gaurav@mgsadvisors.com)

Disclaimer: The contents of this Article are solely for informational purpose. It does not constitute professional advice or a formal recommendation.  The document is made with utmost professional caution but in no manner guarantees the content for use by any person.  It is suggested to go through original statute / notification / circular / pronouncements before relying on the matter given.  Article is meant for general guidance and no responsibility for loss arising to any person acting or refraining from acting as a result of any material contained in this presentation will be accepted by us.  Professional advice  recommended to be sought before any action or refrainment.

More Under Service Tax

Posted Under

Category : Service Tax (3169)
Type : Articles (10813) Featured (3634)
  • Riverside Tours n Travels

    . Transportation of all Military canteen items from military Main canteen to different military canteens (Unit run Canteen) by road is liable to service tax or not?. Is it is necessary to pay service tax by the service provider in this case.

    please clarify

Search Posts by Date