CA Bimal Jain

Service tax rate of 14% shall come into effect only from a date to be notified – Finance Bill, 2015 enacted

The Hon’ble President has given assent to the Finance Bill, 2015 on Thursday, May 14, 2015. Accordingly, the Finance Bill, 2015 now becomes Finance Act (No.20), 2015. However, it is to be noted here that increase in the rate of Service tax from 12.36% to flat 14% (Subsuming Education cess and Secondary & Higher Secondary Education cess) as was proposed in the Union Budget, 2015 will become effective only after the date to be notified and not effective from May 14, 2015.

Further pursuing with Mr. Narendra Modi’s Dream of Swachh Bharat, a new Chapter VI has been inserted in the Finance Bill, 2015 that contains a new levy of cess called the ‘Swachh Bharat Cess’ which may be levied on all or any of the taxable services at the rate of 2% of the value of such services. Hence, Service tax rate may increase from present 12.36% to 16% for specified services on which Swachh Bharat Cess is levied from a date notified later.

Therefore, it is to be noted that Higher rate of Service tax from 12.36% to 14% and Swachh Bharat Cess of 2% will become effective only from the date to be notified and not from May 14, 2015. Further, the changes in Negative List of services will also come into effect from the date notified later.

(Bimal Jain, FCA, FCS, LLB, B.Com (Hons),  Email: bimaljain@hotmail.com)

Click Read Other Articles from CA Bimal Jain

Author Bio

More Under Service Tax

Posted Under

Category : Service Tax (3395)
Type : Articles (17638) Featured (4025)
Tags : Budget (1957) Budget 2015-16 (272) CA Bimal Jain (695) tax rates (120)

0 responses to “14% Service Tax Rate to come into effect only from a date to be notified”

  1. CA Amit says:

    Thanks

  2. Karthik says:

    Thank you. So still Goverment as not declared notified date.

  3. nitin says:

    sir
    thnaks a lot for the same.

  4. Pradnya says:

    Thanks for Sharing ….Information.

  5. H.Sreenivasa Rao says:

    Dear Sir,

    Thanks for the clarification provided.

    Regards.

    HSR

  6. Harish Uniyal says:

    Sir Thank you for information

  7. umesh Khandelwal says:

    Sir, thanks for the update.

Leave a Reply

Your email address will not be published. Required fields are marked *