CA Satish Sarda

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)

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(Article was first published on 27.05.2015 and republished with certain amendments to make it more useful for our readers.)

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132 responses to “Service Tax Rates chart from 01/06/2015”

  1. Rakesh Sharma M-09818237125 says:

    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

  2. sanjay kumar says:

    Hiring of Dumper for Transpiration of Ore kindly inform services tax rate

  3. sanjay kumar says:

    Hiring of Dumper for Transpiration of Ore rate of services tax pleases confirm

  4. MAULIK PRAJAPATI says:

    Dear Sir,

    What % service tax can charged on Outdoor Catering….?????

  5. k gurumoorthy says:

    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

  6. Kamal Das says:

    Can anyone tell me.what is the rate % of ST in subject to renting of a vehicle for official tour purpose.

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