Normal Service tax rate with effect from 1st June 2015 is 14%. However applicable rate is different for many services which may be subject to fulfillment of some conditions. This is mainly due to material value or non-service element included in total value of these services.
Also Read- Service Tax Changes applicable from 01.06.2015
This Chart will provide the effective rates on such services.
| Sr No. | Taxable service | Taxable Value | Old Effective Rate up to 31.05.2015 | New Rate w.e.f. 01/06/2015 | Condition |
| 1 | Financial leasing including hire purchase | 10% | 1.236% | 1.4% | NIL |
| 2 | Transport of goods by rail | 30% | 3.708% | 4.2% | NIL |
| 3 | Transport of passengers with or without accompanied belonging by rail | 30% | 3.708% | 4.2% | NIL |
| 4 | Supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any place specially arranged for organizing a function) together with renting of such premises | 70% | 8.652% | 9.8% | Note(i) |
| 5 | Transport of passengers by air, with or without accompanied belongings | 40% | 4.944% | 5.6% | Note(ii) |
| 6 | Renting of hotels , inns, guest houses, clubs, campsites, or other commercial places meant for residential or lodging purposes | 60% | 7.416% | 8.4% | Note(ii) |
| 7 | Services of goods transport agency | 30% | 3.708% | 4.2% | Note(iii) |
| 8 | Renting of any motor vehicle designed to carry passengers | 40% | 4.944% | 5.6% | Note(iii) |
| 9 | Transport of goods in vessel | 30% | 3.708% | 4.2% | Note(iii) |
| 10 | (i) Tour service –package tour | 25% | 3.09% | 3.5% | Note(iii)&(iv) |
| (ii) Tour service –service solely of arranging or booking accommodation for any person in relation to a tour | 10% | 1.236% | 1.4% | Note(iii), (v)&(vi) | |
| (iii) Tour service – simple tour services | 40% | 4.944% | 5.6% | Note(iii)&(iv) | |
| 11 | Construction of a complex , building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly | ||||
| (i) for a residential unit having carpet area upto 2000 square feet and the amount charged is less than rupees one crore | 25% | 3.09% | 3.5% | Note (vii)&(viii) | |
| (ii) for other than (i) above | 30% | 3.708% | 4.2% | Note (vii)&(viii) | |
Note:
(i) cenvat credit on any goods classifiable under chapters 1 to 22 of Central Excise Tariff Act,1985 used for providing the taxable service, has not been taken.
(ii) cenvat credit on inputs and capital goods, used for providing the taxable service , has not been taken .
(iii) cenvat credit on inputs, capital goods and input services , used for providing the taxable service, has not been taken .
(iv) The bill issued for this purpose indicates that it is inclusive of charges for such a tour.
(v) The invoice bill or challan issued indicates that it is towards the charges for such accommodation.
(vi) This exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation.
(vii) Cenvat credits on inputs used for providing the taxable service has not been taken.
(viii) The value of land is included in the amount charged from the service receiver.
| Sr no | Taxable service | Taxable Portion of Total Value | Old Effective Rate up to 31.05.2015 | New Rate w.e.f. 01/06/2015 |
| 12 | Types of works contracts | |||
| (i) Execution of original works | 40% | 4.944% | 5.6% | |
| (ii) In cases not covered above including maintenance or repair or reconditioning or restoration or servicing or any goods | 70% | 8.652% | 9.8% | |
| (iii)Other works including maintenance, repair , completion and finishing services such as glazing , plastering, floor and wall tilling , installation of electrical fittings of an immovable property | 70% | 8.652% | 9.8% |
Notes:
(i) “total amount” means the sum total of the gross amount charged for the works contract and the fair market value of all goods and services supplied in or in relation to the execution of the works contract, whether or not supplied under the same contract , after deducting (i)the amount charged for such goods or services , if any and (ii)the value added tax or sales tax ,if any , levied thereon.
(ii) The fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.
(iii) cenvat credit of duty of excise paid on any inputs , used in or in relation to the said works contract is not allowable.
| Sr No | Taxable service | Taxable Portion of Total Value | Old Effective Rate up to 31.05.2015 | New Rate w.e.f. 01/06/2015 |
| 13 | Supply of food and drinks in restaurant or outdoor catering | |||
| (i) Service provided by Restaurants | 40% | 4.944% | 5.6% | |
| (ii) Services provided by outdoor caterer | 60% | 7.416% | 8.4% |
Notes:
(i) “Total amount” means the sum total of the gross amount charged and fair market value of all goods and services supplied in or in relation to the supply of food or any other article of human consumption or any other drink (whether or not in intoxicating), whether or not supplied under the same contract or any other contract, after deducting (i) the amount charged for such goods or services, if any and (ii) the value added tax or sales tax, if any, levied thereon.
(ii) The fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.
(iii) cenvat credit of duties or cess paid on any goods classifiable under chapter 1 to 22 of the central excise tariff act, 1985 is not allowable.
| Sr. No. | Taxable service | Old Effective Rate up to 31.05.2015 | New Rate w.e.f. 01/06/2015 |
| 14 | Booking of air tickets by air travel agent | ||
| (i) Domestic booking | 0.60% Of Basic Fare | 0.70% Of Basic Fare | |
| (ii) International Booking | 1.20% of Basic Fare | 1.40% of Basic Fare | |
| 15 | Life insurance service | ||
| First year | 3% of Premium Charged | 3.5% of Premium Charged | |
| Subsequent year | 1.50% of Premium Charged | 1.75% of Premium Charged | |
| 16 | Money changing service | ||
| (i) Gross amount of currency exchanged for an amount upto Rs. 100,000 | 0.12% of gross amount of currency exchanged(min.Rs.30) – | 0.14% or Minimum Rs. 35/- | |
| (ii) Gross amount of currency exchanged for an amount of rupees exceeding Rs. 100,000 and up to Rs. 10,00,000 | Rs.120 + 0.06% of gross amount exceeding 1 lakh | Rs. 140 + 0.07% of gross amount exceeding 1 lakh | |
| (iii) Gross amount of currency exchanged for an amount of rupees exceeding Rs. 10,00,000 | Rs.660 + 0.012% of gross amount exceeding 10 lakhs (max. Rs.6000) | Rs. 770 + 0.014% of gross amount exceeding 10 lakhs (max. Rs.7000 | |
| 17 | Service provided by Lottery distributor and selling agent | ||
| a) If the lottery or lottery scheme is one where the guaranteed prize payout is more than 80% | Rs. 7,000 on every Rs. 10 Lakh or part of Rs. 10 Lakh of aggregate face value of lottery tickets printed by the organizing State for a draw. | Rs. 8,200 on every Rs. 10 Lakh or part of Rs. 10 Lakh of aggregate face value of lottery tickets printed by the organizing State for a draw. | |
| b) If the lottery or lottery scheme is one where the guaranteed prize payout is less than 80% | Rs. 11,000 on every Rs. 10 Lakh or part of Rs. 10 Lakh of aggregate face value of lottery tickets printed by the organizing State for a draw | Rs. 12,800 on every Rs. 10 Lakh or part of Rs. 10 Lakh of aggregate face value of lottery tickets printed by the organizing State for a draw |
(Author is a Past Chairman-Nagpur Branch of ICAI and is a Practicing Chartered Accountant)
Read Other Articles of CA Satish Sarda
(Article was first published on 27.05.2015 and republished with certain amendments to make it more useful for our readers.)
Author Bio
Dear Sir,
Please provide the Service Tax Rate for the F.Y.15-16 on sale of Property
I want to open current account in Bank for fresh /new company and also want to apply service Tex , pan no etc.
can you advice me for the same
Hiring of Dumper for Transpiration of Ore kindly inform services tax rate
Hiring of Dumper for Transpiration of Ore rate of services tax pleases confirm
Dear Sir,
What % service tax can charged on Outdoor Catering….?????
can we be educated on service tax for facility management services.they remploy manpower pay pf esi etc.can the total labour wages paid can be deducted from the service value and balance alone can be taxed
Can anyone tell me.what is the rate % of ST in subject to renting of a vehicle for official tour purpose.
Respected Sir,
In the matter I respectfully submit that -;
2:25 PM (1 hour ago)
1. I have recently purchased a residential flat in Royal Greens Phase II on
25.02.2016.
2. The said residential flat is ready to move and construction of the flat
/tower is compeleted well before agreement date i. e. 17.12.2015.
3.Builder has issued complation certificate to me and my financer Bank.
4. Builder has already applied to JDA for ADHIWAS PRAMAN PATRA in the month
of July 2015, it means that construction was completed before July 2015. On
site the flats are ready to use and completed as per builders plan.
5. Builder M/s Joy Syndicate & enclave Private Limited having PAN NO.
AAACE5910E is forced me for payment of Service Tax on the completed
Residential Flat and collected Rs. 1,45,000/- as service tax.
6. I have requested them to show me the ruling of Service Tax, but they are
saying that service tax is chargeable on the flats whethe these are under
construction or completed.
7. As per the rules Service Tax is chargeable only on under construction
Flats / Projects and it is not chargeable on completed flats.
I therefore, respectfully, request you to kindly clarify the Status of
Applicability of Service Tax on Completed Residential Flats, so that I can
put my case strongly before the builder.
With Regards
Yours Faithfully
Kamal Kumar Soni
9413729534
sir mere pass himfed govt ki ak shop lease per hai jis ka rent 14000 per month hai o ak washing center hai main us ka kitna service tex pay kerun ga
plz replay me
Sir is Service Tax @ 14.5% is applicable to Business carrying out servicing of vehicles?
Hi,
What would be the service tax on Real Estate broker payout.
Hi,
What would be the service tax on Real Estate broker payout. Why would this required.
I am Purchasing a Ready to move duplex in a township at Bhopal. Basic price is 75.90. Agreement date is on 3.11.2015. Builder issued a Ready for possession letter of 3.11.2015. Paid full amount + copy of Bank cheque of 60 lakh builder is charging 3.625 % service tax + 2% vat.
Can u please clarify how much tax should I pay to builder.
regards,
Babita Roy
Sir,
Wheather the Building Materials & Labour Cost are charble to service tax, when it is supplied to any Builder or any Construction Co. What will be abetment & proper service tax rate which is chargeable to the supplier.
Sir i am purchasing a new residential flat on 7/10/2015 at the adjucent in kolkata @ Rs. 1841400/- and valuation the said flat @ Rs. 2100870/-
what is efective rate of service tax and how many ST Amount paid by me ?
Dear Sir,
We have given service tax of 3.09% on 50000/- i.e 1545/-June’15.
But now our builder is saying that rate of Service tax is increased from 3.09% to 14% and asking to pay the differential amount of Rs. 5455/-.
Can you please confirm the actual service tax liability to me.
Regards,
Rupesh Lakde
9922943101
what is service tax rate and abatement percentage of supply of tangible goods service. please tell me as early as possible.
Dear sir,
I am a building civil construction contractor taking works contract for my clients. Am I liable to pay service tax for undertaking house construction for my client. Its a single house for my clients own occupation. Please help as there is a lot of confusion and disagreement regarding it.
Thank u
Looking forward to your reply
Vijay
what is the service tax rate and abatement in case of beauty parlour ????????
Printing contractors serives tax aplicable and what is services tax accounting
sir my works contract bill amount 7232317 and tds 144643 wct 289285 secruti 180803
pay amount 6617394 date 25.09.2015 provied the service tax rates
what rate of workcontact
my client is builder
so please give proper ser tax .
my knowledge ser tax 5.6 of toal running bill
so please reply urgently
Rajesh j shah
9825050376
will service tax applicable if room rent is below 1000/-
N J Momaya Says:
I have Rented My Office from July 2015. on rent amount I have to pay service tax. What will be Rate of Service Tax and under which catagory and code no.
Reply
Dear Sir,
a company need to register for Service Tax once reach beyond Income of Rs 1000000/-. For Ex. company is working since 01.04.2015 and now reach to 12 lakhs. for previous income service tax was not charged in Invoice. so, now if i register for service tax on which income i need to pay Service Tax?
Sir,
We are hiring the Security Services from Proprietory Firm, let me the know how contractor raise Invoice along with service Tax and what will be the account procedure in my end
Let me know service tax rate with abatement for carry passengers by taxi.