1st April, 2015

Clarification- No change in rate of Service Tax

Finance bill, 2015 has proposed to increase effective rate of Service Tax from 12.36% to 14%. It is wrongly reported in some quarters that the effective date of change in rate of Service Tax is 1st April, 2015. It is hereby clarified that the change in the rate of Service Tax will be effective from the date to be notified after enactment of Finance Bill, 2015.

In this regard relevant portion of D.O.F. No.334/5/2015-TRU dated 28th February 2015 is produced below:

“3.3 The Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015”.

Hence, it is worthwhile to mention that there is no change in the rate of Service Tax w.e.f. 1st April 2015.

CA. Atul Gupta
Chairman, Indirect Taxes Committee

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0 responses to “No change in rate of Service Tax from 01.04.2015”

  1. sree says:

    Sir,

    I want to supply 20 laptops on rental basis. if the cost of the laptop is 50000, how much i have to pay the service tax per year?

  2. JM Baskar says:

    Respected Sir

    Query: Can you please clarify about education courses accredited by NABET( National Accreditation Board for Education & Training),QCI.

    Does NABET accredited course fall under ” a course recognised by any law” ?

    As per circular 164/15/2012 from TRU”- The words ” recognized by any law” will include such courses as are approved or recognized by any entity established under a central or state law including delegated legislation, for the purpose of granting recognition to any education course or VEC.

    Note : NABET is the constituent Board of Quality Council Of India, the accreditation authority in India. NABET formally recognizes the Vocational training providers and also the courses.

    It would be of great help if this query is answered.

    Kind Regards

  3. surojit parui says:

    If any organisation start charging @14% service tax instead of 12.36% then what will be solution for it…..?

  4. Rawal Singh Bhati says:

    Thangraj james, if you or ur dependent children donot own any house then you may claim 80GG DEDUCTION

  5. Rawal Singh Bhati says:

    Whoever has doubt plz read table 14 in said notification

    It cleary specify each n every thing. And new rate is not ye notify

  6. raghuram tax practitioner says:

    Again same confusion in this mysterious service tax

  7. Thangaraj James says:

    Dear Sir,

    In the FY 2014-15 I was unemployed for 3 months. But I paid Rent of Rs.4800/-. Shall I claim Rs.2000/- deduction under Sec 80GG

  8. Aman Tyagi says:

    Dear Sir,

    As per Notification No. F.No. 334/5/2015-TRU para no 2 clause (ii) clearly state that Changes coming into effect from the 1st April 2015.
    Then how can say that Changes will not effect from April 2015, if same will not applicable for please help to understand for which case/concern this notification applicable

    Regards

    Adv.Aman Tyagi
    M:- 8650671157

  9. Rajkumar Gond says:

    Sir,

    Please clarify from when 14% ST is charged.

  10. R.V.R. says:

    Whenever there is a change in any Tax, Duty, or Cess, the Govt.should clarify its date of effect and should not leave it to the public to guess the date of effect like present Service Tax situation.

  11. JSSP says:

    It is normal for any proposals made in the budget to get notified only after The Bill passing and get getezzted. Hence, till the finance bill is passed the rates hold good, I.e. will not get changed.

  12. CA Subhasis says:

    On enactment there will be no cess. Hence if there is a time gap between enactment and notification people could enjoy reduced service tax @ 12%

  13. Sandeep Gupta says:

    Dear Sir,

    As per Notification No. F.No. 334/5/2015-TRU para no 2 clause (ii) clearly state that Changes coming into effect from the 1st April 2015.
    Then how can say that Changes will not effect from April 2015, if same will not applicable for please help to understand for which case/concern this notification applicable

    Regards

    Adv.Sandeep Gupta
    M:- 9911232148

  14. sumit bajaj Advocate says:

    Sir
    can v advice our clients to charge service tax at previous rates i.e 12.36% till date of notification.
    Thanx

  15. CA. Subhash Chandra Podder says:

    Good, Clarification ,
    Thanks

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