Change in Service Tax Rate!! Introduction of Swachh Bharat Cess!!
Consequent to introduction of Swachh Bharat Cess the rate of service tax has been increased from 14% to 14.5% with effect from 15.11.2015. A few key points to keep in mind regarding this revision in rate of service tax are ennumerated below: > The taxable value of Services for Swachh Bharat Cess will be same as before i.e the provisions relating to abatements, exemptions, etc shall apply mutatis mutandis for the purposes of Swachh Bharat Cess > Service tax, presently being levied at alternative/ composite rates on services provided by air travel agents, life insurance service, service in relation to sale/purchase of foreign exchange including money changing and service by lottery distributors/selling agents shall continue to be done in the similar manner. Option has been provided for levy of Swachh Bharat Cess also at alternative rates in respect of the above mentioned services. The alternate rate of Swachh Bharat Cess would be: Service Tax Liability (at t