SERVICE TAX RATE REVISED from 12.36 percent to flat 14 percent
After the Hon’ble President has given assent to the Finance Bill, 2015 on Thursday, May 14, 2015, the Ministry of Finance, Department of Revenue vide Notification No. 14/2015-ST dated May 19, 2015 has notified increase in the rate of Service tax and SERVICE TAX RATE REVISED from 12.36 percent to flat 14 percent (Including Education Cess and Secondary & Higher Secondary Education Cess) to be effective from June 1, 2015. The extract of notification is reproduced hereunder:
“In exercise of the powers conferred by clauses (a), (c) and (f) of section 107, section 108, sub-sections (2), (3) and (4) of section 109, section 153 and section 159 of the Finance Act, 2015 (No. 20 of 2015), the Central Government hereby appoints the 1st day of June, 2015 as the date on which the provisions of clauses (a), (c) and (f) of section 107, section 108, sub-sections (2), (3) and (4) of section 109, section 153 and section 159 of the said Act shall come into force.”
The simple method for POT Rules for change in rate as per Rule 4:
There are three parameters-
1. Completion of Service
2. Payment received
3. Invoice raised.
If any two parameters are before 1.6.2015 then 12.36%. If any two on or after 1.6.2015 then 14%.
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