Service Tax Rate

1.SERVICE TAX RATE FROM 01.07.1994 TO The financial year 2014-15

 

PeriodBASIC RATE %Education Cess (EC)Higher and Secondary ECEff rate
01/07/1994 to 13/05/20035005%
14/05/2003 to 09/09/20048008%
10/09/2004 to 17/04/2006102012%
18/04/2006 to 10/05/2007122012.24%
11/05/2007 to 23/02/2009122112.36%
24/02/2009 to 31/03/2012102110.30%
01/04/2012 to DATE122112.36%
RATE OF SERVICE TAX
Service Tax which started out at a nominal 5% is now at 15%.
It was increased to 14% for transactions that happened on or after 1 June 2015 and then for transactions that occurred on or after 15 Nov 2015, the new Swachh Bharat Cess at 0.5% was also added to the Service Tax. Therefore, the effective rate became 14.5% with effect from 15 Nov 2015.
For transactions that occurred on or after 1 June 2016, this tax is at 15%.[2] 2016 Union budget of India has proposed to impose a cess, called the Krishi Kalyan Cess, at 0.5% on all taxable services effective from 1 June 2016. The current service tax is at 15%.

a. For Life Insurance under Rule 6(7A)(ii) of Service Tax Rules, 1994

Gross Amount of Premium ChargedNew RateOld Rate
1st year3%1.50%
Subsequent Years1.50%1.50%

 

b. For Money Changing under Rule 6(7B) of Service Tax Rules, 1994

Gross Amount of Currency ExchangedNew RateOld Rate
Up to Rs. 1,00,0000.12% subject to minimum of Rs. 300.10 subject to minimum of Rs. 25
For an amount exceeding Rs. 1,00,000 and up to Rs. 10,00,000Rs. 120 and 0.06%Rs. 100 and 0.05%
For an amount exceeding Rs. 10,00,000Rs. 660 and 0.012% subject to maximum of Rs. 6,000Rs. 550 and 0.01% subject to maximum of Rs. 5,000

 

C.For Distributor or Selling Agent of Lotteries under Rule 6(7C) of Service Tax   Rules, 1994

Guaranteed Prize PayoutNew RateOld Rate
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 drawRs. 6,000/- 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
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. 9,000/- 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

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