Service Tax Rate Raised from 10 Per Cent to 12 Per Cent

The Service tax rate has been  raised from 10 per cent to 12 per cent. Presenting the Union Budget 2012-13 in Lok Sabha today, the Union Finance Minister ShriPranab Mukherjee said that to maintain a healthy fiscal situation, the Government has raised the service tax with consequential changes in rates from services that have individual tax rates. Shri Mukherjee said that this is expected to yield an additional revenue of Rs. 18,600 crore.Meanwhile, the share of services in GDP has increased to 59 per cent, the Minister added.