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,
Let me know Service tax threshold limit on legal charges and professional & consultancy charges for the f.y: 2015-16
Dear sir,
I worked in a auto company,we install CCTV in our company so Plz tell me CCTV camera installation service tax credit available or not.
Regards
Manoj Dhal
What is percentage of service tax on car repairment
service tax on rent a cab
service provider- individual
service receiver- gujarat govt.
I want to know what is service tax rate for one of my client, He is providing the service for eg: he is booking a Hotel rooms for his client. so what is the Service tax rates
one of my client is a works contractor and he is executing layout formation works to the co-operative society i want to know the rate of service tax applicable for this and what will be the rate of Service tax if he execute the same works to Private Limited company.
Regards
V.Vinodkumar
Sir, Please advice me in the following:-
1. I have paid service Tax of 4.944 on under construction flat during the year
2. Whether the same amount comes under Income Tax Rebate, where can I show the amount in ITR-1 for availing Income Tax rebate
Dear Sir,
Please let us confirm regarding cenvat credit of Transport goods by Rail, As per notification letter of 4/2015 we can not take any cenvat credit but as per notification 01/06/2015 not confirmed and please let us know can i take cenvat credit from 01/06/2015 because accordingly your quote (2 Transport of goods by rail 30% 3.708% 4.2% NIL) we are confused now please confirm it.
Thanks
I m a contractor at MES . I just want to know that at which praportion against the contract the serice tax is effective , n how many percent .
Please give me full detail
Sir,
Apartment Owners Associations needs to pay the Service Tax on the amount they collect in advance for whole 1 (one) year?o
Whether the Service Tax is liable to be charged on Maintenance Charges by the Association to the Government Authority since the amount is going to paid to the Agency who is providing these services to the Apartments. Individual have to pay their liability why the Association needs to deposit the Service tax when they are collecting from the end users that is the Service provider on contract basis to the Resident?
Please clarify and reply soon.
Regards
O.P. Poddar
How to calculate service tax for mangal karayalaya
Respected Sir/Madam,
I am running a Computer Institute.
I Teach so many Computer Courses (Like – BASIC, Designing, Tally etc)
I also work on govt projects (Skill Development Courses)
I receive two type of Income
1. Through Government (Which is Service Tax Exempted)
2. Through General Student
Please tell me that My Income will be taxable or not
If sum of Total Income cross 10 Lack
thanks
Dear Sir,
I have one doubt please clarify on that, we are manufacture Excise unit, now we are going to construct additional building in contract basis. the contracter make service tax in his bill the rate of tax is like this ( for example total value of bill rs. 100000.00 40% of the value he was billed the service tax like 40000.00 @ 14% Rs. 5600.00 50% 0f the service tax amount he was claimed to us Rs. 2800.00 The total Bill amount is Rs. 100000.00 + Rs 2800- st = 102800/- is it correct method of ST pls explain on that
Any Changes in works contractor service labour works 100% service tax payable service receiver please confirm.
Dear CA Satish Sarda Ji,
I have a question.
I have purchased under construction flat in Mulund, Mumbai in Oct 2012. The flat cost is Rs 1.45 crore and the carpet area of the flat is 1215 sq ft.
I have made part payment in Oct 2012 and was charged Service Tax @ 3.09% . Another part payment made in Apr2013 was charged @ 3.708%. Please advise if this is correct as this excludes residential property.
C. Abatement
5. The abatement available under S. No 12 of notification 26/2012-ST dated June 20, 2012 for construction of a complex, building, civil structures etc. is being reduced from the existing 75% to 70% for construction other than residential properties having a carpet area up to 2000 sq ft or where the amount charged is less than Rs 1 crore. This will come into effect from March 1, 2013.
Additionally the builder has charged me Service Tax @ 12.36% for the following payments made by us towards charges / deposits which is normally due on completion. Please advise if this is correct. I understand service tax cannot be collected on maintenance charges. Appreciate your guidance.
CLUBHOUSE MEMBERSHIP FEES Rs 370000
SOCIETY FORMATION CHARGES Rs 2500
MAINTENANCE OUTGOING CHARGES (18 MONTHS DEPOSIT) Rs 166500
INFRASTRUCTURE CHARGES Rs 370000
sir,
my work is data entry through manpower
so what is my current service tax pls help me.
Hi,
Apology for asking a amateur question. I would need your help to understand what does the Taxable value mean here, is it the X% of the total billed amount? And also will service tax be applicable for purchase where service is not provided like sale of software or hardware?
Thank you for sharing the knowledge.
Regards,
Avi
sir i have given a contract of Air Condition maintenance & services of AMC. sir pl. give me a suggestion reg. service tax who will pay 100% service tax. service provide Or service receiver.
rajesh
Sir, I m looking for a garments manufacturing business, please advice what service tax rate be charged
I WANT TO KNOW THE NEW RATE OF SERVICE TAX ON ADVERTISING PRINT MEDIA
Dear sir,
I want to know is hire (monthly) basis transporter applicable TDS Or Services Tax
That also rate of tax
Regards
Nikhil
Dear Sir
I WANT TO KNOW THE EXISTING RATE OF SERVICE TAX ON FABRICATION WORK RATE CHART .
Regards
Manoj Mishra
9059708346
Sir,
Builder charged the service tax on each and every payment till possession. If the flat brought in resale can builder charge service tax @ 14% on transfer fee. Pleas reply.
sir please let us know weather govt road maintenance and construction for pwd pradanmatri roads are taxble and if yes what is the tax rate
Service Tax is Applicable on Electronic Media ??? IF yes then can i get a reference of that..
Thanks
Sunil
Dear Sir,
What should service tax and vat (in percentage) on comprehensive annual maintenance work contract for audio visual equipment.(repairing, maintenance, service)
How many percentage we raise to service tax on AMC basic amount and how many percentage we raise vat on AMC basic amount.
Please help me..
Regard
Rajesh Kr
dear respected sir,
is it applicable for excise tax on manufacture of spun pipes, boom pipes if applicable how much rate of tax sir…
sir i perched a house by builder i will paid 5,25000 so i want sir what service tex i will paid on this house cost please give me answer
Sir,
Services relating to Agriculture falls under negative list Hence loading/unloading/storage of chick peas is exempted from Service Tax or otherwise ?
A V Raghava Rao : W.E.F 01 April 2015 under reverse charge effectively for motor vehicle under non abated value service provider has to pay 50% .
But payment has to be made after claiming abatement of 60%.
A V Raghava Rao : Yes W.E.F 01 April 2015 under reverse charge effectively for motor vehicle under non abated value service provider has to pay 50% .
But payment has to be made after claiming abatement of 60%.
which items was covered under foodstuff which was exempt from service tax payment of freight.
sir,
what is the position regarding payment of service tax, if one of our client is dealing in sugar wholesale dealing. and if one of our client is dealing in sugar wholesale trading as well as in iron trading not registered with excise department.
what is the meaning of Execution of original works is it applies for electrical contractor also or not & at what rate S Tax.
How much S Tax has to be pd for Govt projects carrying out elect work. Also in composition if the project is under competition and service portion is only 10% & Vat 8% then what will be Taxable part. pl confirm
We are register unit under Central Excise & removing our product in the below mentioned procedure and paying the Service tax of outward GTA,as
(A). Fright Prepaid Basis Invoice: Ass Value of Invoice + Excise + VAT/CST + Fright = Total Invoice Value.
(B) Depot Sales Invoice: Ass value of Invoice + Fright + Excise + CST/FORM = Total Invoice Value.
(C) Fright Paid Basis Invoice: Ass Value of Invoice ( Including Fright) + Excise + VAT/CST = Total Invoice Value..
(D) Fright on Merchant Exporter: In such type sale, we have considered the Sales Value, Delivery at port including Fright.
With reference to the Board Circular No.988/12/2014 dt. 20.10.2014 & 999/6/2015 dt. 28.02.2015. Kindly give your valuable comment, Cenvat credit is eligible on outward fright in these type sales (Domestic/Export).
Kindly give your valuable comment on the above issue
Credit note issue in the month of June’15 aganist May’15. what rate of service tax will be applicable at the time of issuing the credit note.
Break-up for 14% service tax…
Dont select primary and secondary education cess..
Select only the main code..
We paid like that..hope it is right??
– See more at: https://taxguru.in/service-tax/effective-service-tax-rates-applicable-01062015.html#sthash.u84LYFgh.dpuf
Service tax rates – break-up for 14%..
While making payment, do not select primary & education cess..select only main accounting code and then pay the full amount..we paid today like that..
Hope, it is right?
Break-up for 14% service tax…
Dont select primary and secondary education cess..
Select only the main code..
We paid like that..hope it is right??
Dear to all
help me out, how to make the payment in online
Thanks and Regards
Hemanath
Dear to all
Gud Morning
Dear sir,i want to know what is break up 14% of service tax
before we have 12.36%,i will make the payment like 12% Basic 2% Higher Edcu and 1% Sec
kindly tell in 14%, how can i make the make in online
Thanks and regards
Hemanath
I have a proprietorship firm. If we raise a bill in the month of june for Rs. 1 lac, the service tax paid is Rs. 14000. If the payee does not pay me the amount before 30th June i.e. Rs. 1,14,000.
Will I have to pay the service tax of Rs. 14000 on 5th July.
.
Respected, Sir please send under noted information
1. Is Rail way repair maintenance of building, road , sanitary, painting, white washing
in service building, residential colony, circulating area are covered for service tax.
2. is there different rule for service building and residential colony and rail way tanning institute, rest house, etc.
3. what rate of service tax applicable
4. from which date service tax is payable
please note that the work involve in addition and alteration, new addition.
thanking and regards . s k majumdar
please tell me about service tax on non a.c resturant whether exempt or not
Dear Sir,
I have question regarding service tax on handling charges which was previously charged @ 3.09 % what will be the rate w.e.f 1/6/2015. sir we are the carrying and forwarding agent of Indian Oil Corporation.
Respected Sir,
I want to know if the service provided in the month of may 2015 what will be rate of service tax and what is rate of service tax on handling charges which was 3.09%
Area Manager
Himfed Una
09459081526
Dear sir,
Plz telling that details in service tax 14% codes & intereset codes.
Please send service Tax changes from 01-06-2015 GO to Municipality.
GOOD EVENING EVERY ONE
Dear sir,i want to know what is break up 14% of service tax
9319596262
what will be service tax rates for work contract services like civil construction and civil foundation work.
Explain through an example.