Rates of service tax and compound rates since 1994
|
Sr. No.
|
Period
|
Rate of Service Tax
|
Rate of Education Cess
|
Rate of Secondary and Higher Secondary Education Cess
|
Swachh Bharat Cess
|
|
1
|
1-7-1994 to 13-5-2003
|
5%
|
Nil
|
Nil
|
Nil
|
|
2
|
14-5-2003 to 9-9-2004
|
8%
|
Nil
|
Nil
|
Nil
|
|
3
|
10-9-2004 to 17-4-2006
|
10%
|
2% of S.T.
|
Nil
|
Nil
|
|
4
|
18-4-2006 to 31-5-2007
|
12%
|
2% of S.T.
|
Nil
|
Nil
|
|
5
|
1-6-2007 to 23-2-2009
|
12%
|
2% of S.T.
|
1% of S.T.
|
Nil
|
|
6
|
24-2-2009 to 31-3-2012
|
10%
|
2% of S.T.
|
1% of S.T.
|
Nil
|
|
7
|
1-4-2012 to 31-5-2015
|
12%
|
2% of S.T.
|
1% of S.T.
|
Nil
|
|
8
|
1-6-2015 to 14-11-2015
|
14%
|
Nil
|
Nil
|
Nil
|
|
9
|
15-11-2015 onwards
|
14%
|
Nil
|
Nil
|
0.5%
|
Compound rates of service tax
|
Nature of Service
|
Compound Rate Till 31-5-2015
|
Compound Rates from 1-6-2015 to 14-11-2015
|
From 15-11-2015 onwards
|
Reference
|
|
1
|
2
|
3
|
4
|
5
|
|
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.
|
- 0.7% on the basic fare in case of domestic booking.
- 1.4% on the basic fare in case of international booking.
|
Same as coloumn 3 + Swachh Bharat Cess
Swachh Bharat cess = (service tax liability)*0.5/14
|
Rule 6(7) of Service Tax Rules,1994.
|
|
Insurer carrying on life insurance business
|
- On the gross premium charged from the policyholder reduced by the amount allocated for investment ans savings on behalf of policyholder.
- In all other cases, 3% of the premium charged in the first year and 1.5% of premium charged in subsequent year.
|
- On the gross premium charged from the policyholder reduced by the amount allocated for investment ans savings on behalf of policyholder.
- In all other cases, 3.5% of the premium charged in the first year and 1.75% of premium charged in subsequent year
|
Same as coloumn 3 + Swachh Bharat Cess
Swachh Bharat cess = (service tax liability)*0.5/14
|
Rule 6(7A) of Service Tax Rules,1994
|
|
Purchase or sale of foreign currency including money changing
|
- 0.12% of gross amount of currency exchanged for an amount up to ₹ 1 lac subject to minimum 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 gross amount of currency exchanged for an amount exceeding ₹ 10 lacs but subject to maximum amount of ₹ 6000.
|
- 0.14% of gross amount of currency exchanged for an amount up to ₹ 1 lac subject to minimum amount of ₹ 35.
- ₹ 140 and 0.07% of the gross amount of currency exchanged for an amount exceeding ₹ 1 lac and up to ₹ 10 lacs.
- ₹ 770 and 0.014% of gross amount of currency exchanged for an amount exceeding ₹ 10 lacs but subject to maximum amount of ₹ 7000.
|
Same as coloumn 3 + Swachh Bharat Cess
Swachh Bharat cess = (service tax liability)*0.5/14
|
Rule 6(7B) of Service Tax Rules,1994
|
|
Distributors and selling agents or persons assisting in organizing lottery
|
- ₹ 7000 on every ₹ 10 lacs (or part of 10 lacs) of aggregate face value of lottery provided, where guaranteed price pay out is more than 80%
- ₹ 11000 on every ₹ 10 lacs (or part of ₹ 10 lacs) of lottery provided, where guaranteed price payout is less than 80%
|
- ₹ 8200 on every ₹ 10 lacs (or part of 10 lacs) of aggregate face value of lottery provided, where guaranteed price pay out is more than 80%
- ₹ 12800 on every ₹ 10 lacs (or part of ₹ 10 lacs) of lottery provided, where guaranteed price payout is less than 80%
|
Same as coloumn 3 + Swachh Bharat Cess
Swachh Bharat cess = (service tax liability)*0.5/14
|
Rule 6(7C) of Service Tax Rules,1994
|
|
Education Cess and Secondary & Higher Secondary Education Cess
|
Charged separately
|
Cess has been abolished.
|
|
|
Effective Rates after Abatement (Including Cess)
|
Nature of Service
|
Compound Rate Till 31-5-2015
|
Compound Rates from 1-6-2015 to 14-11-2015
|
From 15-11-2015 onwards
|
Reference
|
|
Works Contract
Option I
Gross Amount – Value of goods
Option II
(a) 40% in case of Original Works
(b) 70% in remaining cases
|
12.36%
4.944%
8.652%
|
14%
5.60%
9.80%
|
14.50%
5.80%
10.15%
|
Rule 2A of Service Tax (Determination of Value) Rules, 2006
|
|
Restaurant Services
|
4.944%
|
5.60%
|
5.80%
|
Rule 2C of Service Tax (Determination of Value) Rules, 2006
|
|
Outdoor Catering
|
7.416%
|
8.40%
|
8.70%
|
Rule 2C of Service Tax (Determination of Value) Rules, 2006
|
|
Financial Leasing and Hire Purchase
|
1.236%
|
1.40%
|
1.45%
|
Notification No 26/2012, Sl. No 1
|
|
Transport of goods by rail
|
3.708%
|
4.20%
|
4.35%
|
Notification No 26/2012, Sl. No 2
|
|
Transport of passengers by rail
|
3.708%
|
4.20%
|
4.35%
|
Notification No 26/2012, Sl. No 3
|
|
GTA
|
3.708%
|
4.20%
|
4.35%
|
Notification No 26/2012, Sl. No 7
|
|
Bundled Services (Food + Rent, etc)
|
8.652%
|
9.80%
|
10.15%
|
Notification No 26/2012, Sl. No 4
|
|
Transport of passengers by air
Economy class
Other class
|
4.944%
7.416%
|
5.60%
8.40%
|
5.80%
8.70%
|
Notification No 26/2012, Sl. No 5
|
|
Room Rent
|
7.416%
|
8.40%
|
8.70%
|
Notification No 26/2012, Sl. No 6
|
|
Renting of Motor Cab
|
4.944%
|
5.60%
|
5.80%
|
Notification No 26/2012, Sl. No 9
|
|
Transport of passengers by a contract carriage other than motor cab and by a radio taxi
|
4.944%
|
5.60%
|
5.80%
|
Notification No 26/2012, Sl. No 9
|
|
Transport of goods in a vessel
|
3.708%
|
4.20%
|
4.35%
|
Notification No 26/2012, Sl. No 10
|
|
Tour Operator Services
(a) Package Tour
(b) Booking Accomodation
(c) Other than above
|
3.09%
1.236%
4.944%
|
3.50%
1.40%
5.60%
|
3.625%
1.45%
5.80%
|
Notification No 26/2012, Sl. No 11
|
|
Construction of complex
(a) Residential complex of area less than 2000 sq ft and amount charged is less than ₹ 1 Crores.
(b) Other complexes
|
3.09%
3.708%
|
3.50%
4.20%
|
3.625%
4.35%
|
Notification No 26/2012, Sl. No 12
|
This is just for your reference. It does not constitute our professional advice or recommendation.
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