SERVICE TAX RATES
|
Sr. No.
|
Period
|
Rate of Service Tax
|
Rate of Education Cess
|
Rate of Secondary and Higher Secondary Education Cess
|
|
1.
|
1-7-1994 to 13-5-2003
|
5%
|
Nil
|
Nil
|
|
2.
|
14-5-2003 to 9-9-2004
|
8%
|
Nil
|
Nil
|
|
3.
|
10-9-2004 to 17-4-2006
|
10%
|
2% of S.T.
|
Nil
|
|
4.
|
18-4-2006 to 31-5-2007
|
12%
|
2% of S.T.
|
Nil
|
|
5.
|
1-6-2007 to 23-2-2009
|
12%
|
2% of S.T.
|
1% of S.T.
|
|
6.
|
24-2-2009 to 31-3-2012
|
10%
|
2% of S.T.
|
1% of S.T.
|
|
7.
|
1-4-2012 till date
|
12%
|
2% of S.T.
|
1% of S.T.
|
COMPOUND RATES UNDER SERVICE TAX RULES- Rule 6 of the Service Tax Rules, 1994 provides optional compound Rate of Service Tax.
|
Nature of service
|
Compound Rate of Service Tax
|
|
Booking of tickets for Air Travel provided by Air Travel Agents
|
- 0.6% on the basic fare in case of domestic booking.
- 1.2% on the basic fare in case of international booking.
|
|
Insurer carrying on life insurance business
|
- On the gross premium charged from the Policyholder reduced by the amount allocated for investment and savings on behalf of the Policyholder.
- In all other cases, 3% of the premium charged in the first year and 1.5% of premium charged in subsequent years.
|
|
Purchase or sale of foreign currency including money changing
|
- 0.12% of the gross amount of currency exchanged for an amount up to 1 lac subject to maximum amount of 30/-.
- 120/- and 0.06% of the gross amount of currency exchanged for an amount exceeding 1 lac and up to 10 lacs.
- 660/- and 0.012% of the gross amount of currency exchanged for an amount exceeding 10 lacs but subject to maximum amount of 6,000/-.
|
|
Distributors and selling agents or persons assisting in organizing lottery
|
- 7,000/- on every 10 lacs (or part of 10 lacs) of aggregate face value of lottery provided, lottery or lottery scheme is one where guaranteed price pay- out is more than 80%.
- 11,000/- on every 10 lacs (or part of 10 lacs) of aggregate face value of lottery provided, lottery or lottery scheme is one where guaranteed price pay-out is less than 80%
|
- The Education Cess and SHEC are payable in addition to the above rates or amount of Service Tax.
- The above rates are optional and the Service Tax assessee can pay the tax at the prescribed rate under Section 66B of the Finance Act, 1994
- If there is any change in rate of service tax then the same is effected prospectively and not retrospectively.
CA Akash Phophalia
9799569294
[email protected]
Office No 3
Second Floor
Amrit Kalash
Residency Road
Near Bombay Motor Circle
Jodhpur-342001
Rajasthan
9911796707
