14% Service Tax from 01.06.2015- Section 66B of the Finance Act, 1994, prescribes the service tax rate. It has been amended by Section 108 of the Finance Act, 2015. The rate of Service Tax is being increased from 12% to 14% (including cesses). The increase in Service Tax rate will come into effect from 1st June, 2015.

No Education Cess & SHE Cess from 01.06.2015- Sections 153 and 159 of the Finance Act, 2015 provide that section 95 of the Finance (No.2) Act, 2004 and section 140 of the Finance Act, 2007, levying Education Cess and Secondary and Higher Education Cess, respectively, on taxable services, shall cease to have effect from a date to be notified by the Central Government. The above provisions levying Education Cess and Secondary and Higher Education Cess should also cease to have effect from 1st June, 2015. (Notification No.14/2015-Service Tax, dated 19th May, 2015 refers), that is the date with effect from which the increase in the Service Tax rate comes into effect.

Swachh Bharat Cess not yet notified– An enabling provision has been incorporated in the Finance Act, 2015 vide section 117 (Chapter VI) to impose a Swachh Bharat Cess on all or any of the taxable services at a rate of 2% or lower on the value of such taxable services. This cess shall be levied on such services at such rate from such date as may be notified by the Central Government. The date from which this amendment would come into effect will be notified in due course.In other words date from which Swachh Bharat Cess will be effective is not yet been notified.

Compiled by  CA Sandeep Kanoi

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One response to “14% Service Tax rates from 01st June 2015 & Changes in Cess”

  1. rahul pareek says:

    what about the balance of EC and SHEC pending in books as service tax credit.. we can not use it for payment of service tax.. what to do with the balance of both

  2. vasu says:

    Service tax rate 14% bt what is education and hugher education cess rate – See more at: https://taxguru.in/service-tax/14-service-tax-rates-01st-june-2015-rates.html#sthash.TMqpHsXN.dpuf

  3. Priyu says:

    Service tax rate 14% bt what is education and hugher education cess rate

  4. Subramanian V says:

    Sir,

    Will the increase in rates apply to DTH Cable Charges paid by a Subscriber
    every month?

  5. Arvind jha says:

    sir what is rate of tax & eduction cess & higher eduction cess please explain

  6. Senthilkumar.R says:

    Dear Sir

    Is there any service charge for the construction of Individual House.

    If yes, that what will be the applicable % on which cost.

    Thanks & Regards

  7. Vijay bansal says:

    We are Govt. contractors,taking works contract from Housing Board Haryana ,A Govt. owned subsidiary,for construction of three storeyed flats for BPL Categories,with covered area around 35 M2, and the contract is running since the last 18 months. Is there service tax liability on the BPL houses , the flats after getting constructed are handedover to the regd. owner on no profit and loss basis. Please let me know whether the servicetax liability is there when thereis no service tax on affordable houses upto 60M2 covered area or Rajiv Gandhi Awas Yojna.. The BPL houses are lowest category . Please guide and oblige.

    Vijay Bansal 9896650730

    With regards

  8. akash vajpai says:

    if you have any query related to tax matter, you can mail me at akashvajpai24@gmail.com. Answer will be given in 24 hours.

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