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Service Tax Rate Chart

Service Tax Rate Chart

Normal Service tax rate with effect from 1st June 2015 is 14%. However applicable rate is different for many services which may be subject to fulfillment of some conditions. This is mainly due to material value or non-service element included in total value of these services.

Service Tax Rate Chart

This Chart will provide the effective rates on such services.

Sr No.Taxable serviceTaxable ValueOld Effective Rate up to 31.05.2015New Rate w.e.f. 01/06/2015Condition
1Financial leasing including hire purchase10%1.236%1.4%NIL
2Transport of goods by rail30%3.708%4.2%NIL
3Transport of passengers with or without accompanied belonging by rail30%3.708%4.2%NIL
4Supply 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 premises70%8.652%9.8%Note(i)
5Transport of passengers by air, with or without   accompanied belongings40%4.944%5.6%Note(ii)
6Renting of hotels , inns, guest houses, clubs, campsites, or other commercial places meant for residential or lodging purposes60%7.416%8.4%Note(ii)
7Services of goods transport agency30%3.708%4.2%Note(iii)
8Renting of any motor vehicle designed to carry passengers40%4.944%5.6%Note(iii)
9Transport of goods in vessel30%3.708%4.2%Note(iii)
10(i)           Tour service –package tour25%3.09%3.5%Note(iii)&(iv)
(ii)         Tour service –service solely of arranging or booking accommodation for any person in relation to a tour10%1.236%1.4%Note(iii), (v)&(vi)
(iii)       Tour service – simple tour services40%4.944%5.6%Note(iii)&(iv)
11Construction 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 crore25%3.09%3.5%Note (vii)&(viii)
(ii)         for other than (i) above30%3.708%4.2%Note (vii)&(viii)
     

(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 noTaxable serviceTaxable Portion of Total ValueOld Effective Rate up to 31.05.2015New Ratew.e.f. 01/06/2015
12Types of works contracts   
(i) Execution of original works40%4.944%5.6%
(ii) In cases not covered above including maintenance or repair or reconditioning or restoration or servicing or any goods70%8.652%9.8%
(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 property70%8.652%9.8%

(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 NoTaxable serviceTaxable Portion of Total ValueOld Effective Rate up to 31.05.2015New Ratew.e.f. 01/06/2015
13Supply of food and drinks in restaurant or outdoor catering   
(i)  Service provided by Restaurants40%4.944%5.6%
 (ii)  Services provided by outdoor caterer60%7.416%8.4%

(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.

Sr. No.Taxable serviceOld Effective Rate up to 31.05.2015New Rate w.e.f. 01/06/2015
14Booking of air tickets by air travel agent  
(i) Domestic booking0.60% Of Basic Fare0.70% Of Basic Fare
(ii) International Booking1.20% of Basic Fare1.40% of Basic Fare
15Life insurance service  
First year3%  of Premium Charged3.5% of Premium Charged
Subsequent year1.50%  of Premium Charged1.75% of Premium Charged
16Money changing service  
(i) Gross amount of currency exchanged for an amount upto Rs. 100,0000.12% of gross amount of currency exchanged(min.Rs.30) –0.14% or Minimum Rs. 35/-
(ii) Gross amount of currency exchanged for an amount of rupees exceeding Rs. 100,000 and up to Rs. 10,00,000Rs.120 + 0.06% of gross amount exceeding 1 lakhRs. 140 + 0.07% of gross amount exceeding 1 lakh
(iii)  Gross amount of currency exchanged for an amount of rupees exceeding Rs. 10,00,000Rs.660 + 0.012% of gross amount exceeding 10 lakhs (max. Rs.6000)Rs. 770 + 0.014% of gross amount exceeding 10 lakhs (max. Rs.7000
17Service provided by Lottery distributor and selling agent  
a)      If the lottery or lottery scheme is one where the guaranteed prize payout is more than 80%Rs. 7,000 on every Rs. 10 Lakh or part of Rs. 10 Lakh of aggregate face value of lottery tickets printed by the organizing State for a draw.Rs. 8,200 on every Rs. 10 Lakh or part of Rs. 10 Lakh of aggregate face value of lottery tickets printed by the organizing State for a draw.
b)      If the lottery or lottery scheme is one where the guaranteed prize payout is less than 80%Rs. 11,000 on every Rs. 10 Lakh or part of Rs. 10 Lakh of aggregate face value of lottery tickets printed by the organizing State for a drawRs. 12,800 on every Rs. 10 Lakh or part of Rs. 10 Lakh of aggregate face value of lottery tickets printed by the organizing State for a draw

Service Tax Rate Chart

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