CA Gaurav Gupta
As we all know Krish Kalyan Cess (KCC) of 0.50% is applicable on all Taxable Services wef from 01.04.2016 and it has resulted in Changes in Service Tax Rates. In this article we have compiled Generic Service Tax Rate Applicable on all Taxable Services, Service Tax on Non Taxable Services , Wholly Exempted Services, Rate of Service Tax post 01.06.2016 in case of Abated services, Effective Rate of Service Tax post 01.06.2016 in case of Valuation , Rate of services where alternate rate is provided post 01.06.2016 and Effective Rate of services in case of reverse charge post 01.06.2016
Also Read: No Krishi Kalyan Cess On Debtors as on 13th May’ 2016
Taxability under Service Tax w.e.f. June 1, 2016
| S. no. | Particular | Effective Service Tax Rate | Effective SBC Rate | Effective KKC rate | |
| A. | Generic Service Tax Rate | – Applicable on all taxable services | 14% | 0.50% | 0.50% |
| B.
|
Service Tax Rate on Non Taxable Services | 0%
|
0%
|
0%
|
|
| – Services provided in Non taxable Territory | |||||
| – Services listed in Negative List | |||||
| – Services provided without consideration | |||||
| C. | Service Tax Rate on Wholly Exempted Services | 0%
|
0%
|
0%
|
|
|
|
– Notificaiton No. 25/2012-Service Tax dated 20.06.2012 (Mega Exemption), | ||||
| – Notification No 33/2012-Service Tax (SSI Exemption), | |||||
| – Notification No. 14/2012 – Service tax (Import of Technology), | |||||
| – Notification No 32/2012-Service Tax (Services by TBI / STEP), | |||||
| – Notification No. 12/2013 (Services to SEZ), | |||||
| – Notification No. 29/2012- Service Tax (Property tax in renting), | |||||
| – Notification No. 6/2013-Service Tax (Exemption against Focus Market Scheme Scrips), | |||||
| – Notification No. 7/2013-Service Tax (Exemption against Focus Product Scheme Scrips), | |||||
| – Notification No. 8/2013-Service Tax (Exemption against Vishesh Krishi and Gram Udyog Yojana), | |||||
| – Notification No. 11/2015-Service Tax (Exemption against Service Exports from India Scheme), | |||||
| – Notification No. 10/2015-Service Tax (Exemption against Merchandise Exports from India Scheme) | |||||
Rate of Service Tax post 01.06.2016 in case of Abated services
| S.No. | Income Heads | Rates Effective From 01.06.2016 | ||||
| Taxable Value | Effective ST Rate | Effective SBC Rate | Effective KKC Rate | Total Effective Tax Rate | ||
| 1 | Services in relation to financial leasing including hire purchase | 10% | 1.40% | 0.05% | 0.05% | 1.50% |
| 2 | Transport of Goods in containers by rail by any person other than Indian Railways | 40% | 5.60% | 0.20% | 0.20% | 6.00% |
| 2A | Transport of Goods by Rail other than as specified above | 30% | 4.20% | 0.15% | 0.15% | 4.50% |
| 3 | Transport of Passengers with or without accompanied belongings by Rail | 30% | 4.20% | 0.15% | 0.15% | 4.50% |
| 4 | Bundled service by way of 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 other place, specially arranged for organizing a function) together with renting of such premises | 70% | 9.80% | 0.35% | 0.35% | 10.50% |
| 5 | Transport of passengers by air with or without accompanied belongings in economy class | 40% | 5.60% | 0.20% | 0.20% | 6.00% |
| 5A | Transport of passengers by air in higher class | 60% | 8.40% | 0.30% | 0.30% | 9.00% |
| 6 | Renting of inns, hotels, Guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes | 60% | 8.40% | 0.30% | 0.30% | 9.00% |
| 7 | Services of goods transport agency in relation to transportation of goods other than household goods | 30% | 4.20% | 0.15% | 0.15% | 4.50% |
| 7A | Services of goods transport agency in relation to transportation of household goods | 40% | 5.60% | 0.20% | 0.20% | 6.00% |
| 8 | Services provided by a foreman of chit fund in relation to chit | 30% | 4.20% | 0.15% | 0.15% | 4.50% |
| 9 | Renting of motor cab designed to carry passengers | 40% | 5.60% | 0.20% | 0.20% | 6.00% |
| 9A | Transport of passengers, with or without accompanied belongings, by a contract carriage other than motorcab or a radio taxi or a stage carriage | 40% | 5.60% | 0.20% | 0.20% | 6.00% |
| 10 | Transport of goods in a vessel | 30% | 4.20% | 0.15% | 0.15% | 4.50% |
| 11 | Services by Tour operator in relation to Solely of arranging or booking accommodation | 10% | 1.40% | 0.05% | 0.05% | 1.50% |
| 11A | Services by Tour operator in relation to tours other than 11 | 30% | 4.20% | 0.15% | 0.15% | 4.50% |
| 12 | Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority | 30% | 4.20% | 0.15% | 0.15% | 4.50% |
Effective Rate of Service Tax post 01.06.2016 in case of Valuation
| Particular | Taxable Value | Effective Service Tax Rate | Effective SBC | Effective KKC | Total Effective Tax Rate |
| Works Contract – Original Works | 40% | 5.60% | 0.20% | 0.20% | 6.00% |
| Works Contract – Others | 70% | 9.80% | 0.35% | 0.35% | 10.50% |
| Restaurant | 40% | 5.60% | 0.20% | 0.20% | 6.00% |
| Outdoor Catering | 60% | 8.40% | 0.30% | 0.30% | 9.00% |
Rate of services where alternate rate is provided post 01.06.2016
| Service Provider | Services | Effective Service Tax Rate | Effective SBC | Effective KKC | Effective Total Rate |
| Money Changer | Services in relation to purchase or sale of foreign currency for an amount upto rupees 100,000 | 0.14% | 0.005% | 0.005% | 0.15% |
| Services in relation to purchase or sale of foreign currency for an amount exceeding Rs. 100,000 but upto rupees 1000,000 | Rs. 140 + 0.07% | Rs. 5 + 0.0025% | Rs. 5 + 0.0025% | Rs. 150 + 0.075% | |
| Services in relation to purchase or sale of foreign currency for an amount exceeding Rs. 1000,000 | Rs. 770 + 0.014% | Rs. 27.5 + 0.0005% | Rs. 27.50 + 0.0005% | Rs. 825 + 0.015% | |
| Lottery | Guarantee payout more than 80% | Rs 8200 on every Rs 10 Lakh (or part thereof) | Rs 293
on every Rs 10 Lakh (or part thereof) |
Rs 293
on every Rs 10 Lakh (or part thereof) |
Rs 8,786 on every Rs 10 Lakh (or part thereof) |
| Guarantee payout less than 80% | Rs 12,800 on every RS 10 Lakh (or part thereof) | Rs 457
on every Rs 10 Lakh (or part thereof) |
Rs 457
on every Rs 10 Lakh (or part thereof) |
Rs 13,714on every RS 10 Lakh (or part thereof) | |
| Insurance | First year of Policy | 3.50% | 0.125% | 0.125% | 3.75% |
| Subsequent years | 1.75% | 0.063% | 0.063% | 1.88% | |
| Air Travel Agent | Domestic Travel | 0.70% | 0.025% | 0.025% | 0.75% |
| Foreign Travel | 1.40% | 0.050% | 0.050% | 1.50% |
Effective Rate of services in case of reverse charge post 01.06.2016
| S.No. | Service | Rates Effective From June 1, 2016 | ||||
| Taxable Value | Effective Service Tax Rate | Effective Swach Bharat Cess Rate | Effecive Krishi Kalyan Cess | Total effective Tax | ||
| 1 | Rent A Cab – with abatement | 40% | 5.60% | 0.20% | 0.20% | 6.00% |
| 2 | Rent A Cab – without abatement | 50% | 7.00% | 0.25% | 0.25% | 7.50% |
| 3 | Manpower Supply | 100% | 14.00% | 0.50% | 0.50% | 15.00% |
| 4 | Security Services | 100% | 14.00% | 0.50% | 0.50% | 15.00% |
| 5 | Payment to Advocates and Lawyers | 100% | 14.00% | 0.50% | 0.50% | 15.00% |
| 6 | Payment for Spnsorship | 100% | 14.00% | 0.50% | 0.50% | 15.00% |
| 7 | Transportation of Goods By Road | 30% | 4.20% | 0.15% | 0.15% | 4.50% |
| 8 | Payment to Independent Director | 100% | 14.00% | 0.50% | 0.50% | 15.00% |
| 9 | Works Contract- For Original Works | 20% | 2.80% | 0.10% | 0.10% | 3.00% |
| 9 | Works Contract- For Other Works | 35% | 4.90% | 0.18% | 0.18% | 5.25% |
| 10 | Payment to Arbiteral tribunal | 100% | 14.00% | 0.50% | 0.50% | 15.00% |
(The author can be contacted at gaurav@mgsadvisors.com)
Disclaimer: The contents of this Article are solely for informational purpose. It does not constitute professional advice or a formal recommendation. The document is made with utmost professional caution but in no manner guarantees the content for use by any person. It is suggested to go through original statute / notification / circular / pronouncements before relying on the matter given. Article is meant for general guidance and no responsibility for loss arising to any person acting or refraining from acting as a result of any material contained in this presentation will be accepted by us. Professional advice recommended to be sought before any action or refrainment.
Transportation of all Military canteen items from military Main canteen to differentmilitary canteens (Unit run Canteen) by road(GTA) is liable to service tax or not?. Is it is necessary to collect and pay service tax by the service provider in this case.?
From where I can get the specific list of service tax exempted items of grocery ( for exemption to GTA).Is there is any mechanism for checking a specific item exempted from service tax for GTA for the transportation.
. Transportation of all Military canteen items from military Main canteen to different military canteens (Unit run Canteen) by road is liable to service tax or not?. Is it is necessary to pay service tax by the service provider in this case.
please clarify