CA Sandeep Kanoi
Central 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.
Author Bio
hello,
my name is ashwini
i want know now can i file income tax return for AY 14-15
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 ….????
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?
what is the latest rate of service tax for commercial construction??
finance company take file charge from me ITS IN SERVICE TAX APPLICABLE OR NOT CAR LOAN
Hello
Today I received a bill from Photographer who charged service tax@ 14.6%.
Is it Right? Plz confirm
we have a electrical work order there is service tax 9.80% its according to tax rule or not
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
whether service to be charged on payment of rent to house owner for office space paying Rs 19,000/=pm
Dear sir,
Kindly provide the service tax rate for fixed charges.
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
Sir please tell me what is notification no. to avail abatement 70% in the head transport of goods by road in service tax
what are the present exise duty %
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
Mr
If we find a company computer operator when service tax for that we have to take much of the company
dear sir
If we find a company computer operator when service tax for that we have to take much of the company
what would be the rate of service tax for renting PA system, stage decoration, shamiyana for a school
Dear Pl give the information of Service tax on cotton transportation on road or lorry transport.
Good Morning Sir,
Kindly send Service Tax Rate and SBC calculation and rate Chart ( Current ) to my E-mail address
Dear Sir,
Please let us know if we have to charge Swatch Bharat Cess seperately or include it in Service Tax.
Raju
Dear Experts,
while charging the service tax do we have to show the Swachh Bharat Cess separately?.
Thanks,
Raju
Kindly send Service Tax and SBC calculation and rate Chart ( Current ) to my E-mail address
Dear Sir
Pls let us know the advertising agencies service tax calculation
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
Dear All,
What necessary about Swatch Bharat Cess, If Govt. collect municipal tax ?
Dear Experts,
while charging the service tax do we have to show the Swachh Bharat Cess separately?.
Thanks,
shrikanth.
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.
service tax rate
Thanks for information & We can Expect this changes will good in future.
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 .
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.
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.
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.
Thanks for information.
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.
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.
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 !!
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.
Actually of Swachh Bharat Cess on Service Tax Rates is not fair cuss’s already service tax increase in few months before.
THANKS VERY INFORMATIVE.