CA Sandeep Kanoi

CA Sandeep KanoiCentral Government has vide No. Notification No. 21/2015-ST dated November 6, 2015 has notified that Swachh Bharat Cess (SBC) is applicable on all taxable services from 15.11.2015 this has increased the service tax rate to 14.50% and has also resulted in Changes in Service Tax Rates from 15.11.2015 on Various Services which are under abatement or on which reverse Charge Mechanism is applicable.In this Article we have compiled Service Tax rates Post applicability of Swachh Bharat Cess

This Chart will provide the effective Rate of Service Tax With Effect from 15.11.2015

S.

N.

Taxable

service

Taxable Value Rate wef  15.11.2015 Rate w.e.f. 01.06.2015 to 14.11.2015 Old Effective Rate up to 31.05.2015 Condition
1 Financial leasing including hire purchase 10% 1.45% 1.40% 1.24% NIL
2 Transport of goods by rail 30% 4.35% 4.20% 3.71% NIL
3 Transport of passengers with or without accompanied belonging by rail 30% 4.35% 4.20% 3.71% 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% 10.15% 9.80% 8.65% Note(i)
5 Transport of passengers by air, with or without accompanied belongings 40% 5.80% 5.60% 4.94% Note(ii)
6 Renting of hotels , inns, guest houses, clubs, campsites, or other commercial places meant for residential or lodging purposes 60% 8.70% 8.40% 7.42% Note(ii)
7 Services of goods transport agency 30% 4.35% 4.20% 3.71% Note(iii)
8 Renting of any motor vehicle designed to carry passengers 40% 5.80% 5.60% 4.94% Note(iii)
9 Transport of goods in vessel 30% 4.35% 4.20% 3.71% Note(iii)
10 (i) Tour service –package tour 25% 3.625% 3.50% 3.09% Note(iii)

&(iv)

(ii) Tour service –service solely of arranging or booking accommodation for any person in relation to a tour 10% 1.45% 1.40% 1.24% Note(iii), (v)&(vi)
(iii) Tour service – simple tour services 40% 5.80% 5.60% 4.94% 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% 3.625% 3.50% 3.09% Note (vii)&(viii)
(ii) for other than (i) above 30% 4.35% 4.20% 3.71% 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 Rate wef 15.11.2015 New Rate w.e.f. 01/06/2015 to 14/11/2015
Old Effective Rate up to 31.05.2015
12 Types of works contracts
(i) Execution of original works 40% 5.80% 5.60% 4.94%
(ii) In cases not covered above including maintenance or repair or reconditioning or restoration or servicing or any goods 70% 10.15% 9.80% 8.65%
(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% 10.15% 9.80% 8.65%

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 Rate wef 15.11.2015 Rate w.e.f. 01/06/2015 to 14.11.2015 Old Effective Rate up to 31.05.2015
13 Supply of food and drinks in restaurant or outdoor catering
(i) Service provided by Restaurants 40% 5.80% 5.60% 4.94%
(ii) Services provided by outdoor caterer 60% 8.70% 8.40% 7.42%

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.

In absence of any clarification/Clarity on impact of Swachh Bharat Cess on Service Tax Rates on Air Travel, Life Insurance, Money Changing & Lotteries Services which are covered rules 6(7), 6(7A), 6(7B) and 6(7C) of the Service Tax Rules, 1994 although here is no specific exemption for such services. We will compile the same once we get the clarity on the same.

This increased rates of service tax reminds me the wordings of ‘Benjamin Franklin’

“Nothing is certain but death and Tax”.

Disclaimer- Please Check the Relevant Notifications, Act, Rules before relying on the above information.

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7 responses to “Service Tax Rate Chart effective from 15th November 2015”

  1. ashwini says:

    hello,

    my name is ashwini

    i want know now can i file income tax return for AY 14-15

  2. ankur gupta says:

    sir ,
    how much service tax i have to paid to govt. if i am a air booking travel agent …i have to pay service tax on my commision only or on gross amount ….????

  3. Karthik (Beyond) says:

    Dear Sir,

    We are exporting customize software developing to USA is turnover around 15 lakhs, that is exempted. But domestic service are also providing her that’s around 50 thousand. now we are liable to pay or not covered in 10 lakhs turn over limit?

  4. Jignesh Prajapati says:

    what is the latest rate of service tax for commercial construction??

  5. RAJA KUMAR says:

    finance company take file charge from me ITS IN SERVICE TAX APPLICABLE OR NOT CAR LOAN

  6. chandan says:

    Hello

    Today I received a bill from Photographer who charged service tax@ 14.6%.

    Is it Right? Plz confirm

  7. rakesh kumar swain says:

    we have a electrical work order there is service tax 9.80% its according to tax rule or not

  8. Rakesh Kumar Swain says:

    Dear Sir,

    We have a work order there is service tax 9.80% please advice its a electrical job order how they are calculate the tax and its according to tax rule or not

  9. diler toppo says:

    whether service to be charged on payment of rent to house owner for office space paying Rs 19,000/=pm

  10. Irshad Khan says:

    Dear sir,

    Kindly provide the service tax rate for fixed charges.

  11. daljit kumar singh says:

    please transport rate is 4.35, pleae give us breakup of 4.35, example

    if transport freight is 50000.00
    what is calculation of service tax and Swachh Bhara

  12. anil kumar jain says:

    Sir please tell me what is notification no. to avail abatement 70% in the head transport of goods by road in service tax

  13. mani says:

    what are the present exise duty %

  14. mani says:

    194 Ia At the time of credit or payment, whichever is earlier, when the amount exceeds Rs. 1 ,80,000/- it amont apply on year or month

  15. ROHIT SHARMA says:

    Mr
    If we find a company computer operator when service tax for that we have to take much of the company

  16. ROHIT SHARMA says:

    dear sir
    If we find a company computer operator when service tax for that we have to take much of the company

  17. suja says:

    what would be the rate of service tax for renting PA system, stage decoration, shamiyana for a school

  18. J B Mandre says:

    Dear Pl give the information of Service tax on cotton transportation on road or lorry transport.

  19. basil says:

    Good Morning Sir,
    Kindly send Service Tax Rate and SBC calculation and rate Chart ( Current ) to my E-mail address

  20. Shri Balajee Carriers says:

    Dear Sir,
    Please let us know if we have to charge Swatch Bharat Cess seperately or include it in Service Tax.
    Raju

  21. Shri Balajee Carriers says:

    Dear Experts,
    while charging the service tax do we have to show the Swachh Bharat Cess separately?.
    Thanks,
    Raju

  22. Ranjan Datta says:

    Kindly send Service Tax and SBC calculation and rate Chart ( Current ) to my E-mail address

  23. latha says:

    Dear Sir
    Pls let us know the advertising agencies service tax calculation

  24. Brijesh Mogha says:

    Dear All

    We are providing Air Travel Agent Services, now the rate of service tax has been increased from 0.5%, let us know the rate of Service Tax on Domestic Air Ticket and Intentional Air Ticket

  25. Sachin Bhogan says:

    Dear All,

    What necessary about Swatch Bharat Cess, If Govt. collect municipal tax ?

  26. Shrikanth Kama says:

    Dear Experts,

    while charging the service tax do we have to show the Swachh Bharat Cess separately?.

    Thanks,
    shrikanth.

  27. Sanjeev Sharma says:

    Dear Sir

    Thanks for information. I think Indian Govt. should have interduced Corruption Cess Instead of Swachh Bharat Cess. We need to clean Corruption first instead of Swachh Bharat.

    NAMO Govt. also wait for Bihar Election Results and try to give Gift on the Occasion of Diwali to the Nation.

  28. ruchir kotak says:

    service tax rate

  29. George Maybin says:

    Thanks for information & We can Expect this changes will good in future.

  30. vinodkumar patil says:

    Dear All,

    only Indian govt make service tax law difficult since 2011 . each and every change in service tax during the year any time.Small service provider and service recipient , excel are confused .

  31. Rajkumar says:

    Alrady People in india facing a financial problem,again this tax, even smole but will incresing in future.Instaint of solving problem of poorty This govt.is increses more borden which is payble by
    this poor.

  32. vinay says:

    instead of condemning each step of Govt.we all should keep in mind that this increase done for specific visionary process and it was well in advance declared by this govt.during the budget session.

  33. Davidson says:

    By not making this cenvatable, how does the government plan to control inflation. Cleanliness has to come from bottom of heart & not by imposing levies. This would have a regressive impact.

  34. saptamanyu Ray says:

    Thanks for information.

  35. Rajesh,Mumbai says:

    NDA government is also following footsteps of UPA which time to time complicated laws and kept business community on toes. NDA already increased Service tax from 12.36 to @ 14% (they also enhanced taxable portion on few services) and recently they again levied extra excise duty on petrol.This extra 0.5% should have been avoided because it will definitely add fuels to already worsening image of NAMO government.Inspite of expanding Tax base, there are looting existing tax payers.Until Existing corrupt minded bureaucrats do not retire, they will continue to misguide illiterate class of politicians and we can not hope for better governance.

  36. AVINASH MALPANI says:

    Totally nonsense the way this Govt is increasing Tax it will become unpopular soon.

    What is Service Tax applicable for renting of office space or Business Centre is abatement allowed and what percent.

  37. harshad says:

    They could have waited till 30 November or should have started from 1st January as people will have to keep in mind different figures for half month or for those who have to pay quarterly will also have to keep trac for 1-10-15 to 14-11-15 and again from 15-11-15 to 31.1.2.15 … just for small amount lots of inconvenience to the business entity as well for C.As.
    This is how bureaucracy thinks & works !!

  38. Hariom Sharma says:

    Dear Respected Members

    The matter is not of 0.50 paisa this is not in favour of the poor people of India, India is not only NCR and Metro City. Swachh Bharat Can not only be made by0.50 paisa, there should be total employment opportunities and good education and good living infrastructure also. I have a view that after 50 years the Indian people will have to be financed by somebody for heavy taxes burden. Instead of increasing tax rate we Government can initiate to increase productivity and good infracture the imposition of real Traffic rules at least in the country. Please note here expressed are views only but not comments.

  39. kalpesh Surthi says:

    Actually of Swachh Bharat Cess on Service Tax Rates is not fair cuss’s already service tax increase in few months before.

  40. rkd says:

    THANKS VERY INFORMATIVE.

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