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No change in rate of Service Tax from 01.04.2015

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.

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

Categories: Service Tax

View Comments (15)

  • Whoever has doubt plz read table 14 in said notification

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

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

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

  • 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

  • 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?

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