Comparative Service Tax Chart with Service Tax Rate of 14 % ,14.5 % and 15%
Service tax rate increased from 14.5% to 15% (increase by way of levying Krishi Kalyan Cess at 0.5% ). The Said change will be effective from 1st June, 2016.
Service Tax Basic Rate -14 %
Swachh Bharat Cess – 0.5 % w.e.f. from 15/11/2015
Krishi Kalyan Cess -0.5% w.e.f from 01/06/2016
Total Service Tax Rate 15%
| Sl. No. | Description of taxable service | Taxable per cent (%) | Effective rate of ST: 01.06.2015 to 14.11.2015 (%) | Effective rate of ST: 15.11.2015 (after Introduction of SB Cess @ 0.5%) up to 31.05.2016 (%) | Effective rate of ST: 1.06.2016 (after Introduction of KKC @ 0.5%)(%) | |
| 1 | Financial leasing including hire purchase | 10 | 1.4(14%*10%) | 1.45(14.5%*10%) | 1.5(15%*10%) | |
| 2 | Transport of goods by rail (other than service specified at Sl. No. 2A below) | 30 | 4.2(14%*30%) | 4.35(14.5%*30%) | 4.5(15%*30%) | |
| 2A | Transport of goods in containers by rail by any person other than Indian Railways | 40 | NA | Entry inserted vide NN 8/2016-ST dated 01.03.2016 w.e.f 01.04.2016Applicable rate of ST w.e.f 01.04.2016 to 31.05.2016: 5.8 (14.5%*40%) | 6(15%*40%) | |
| 3 | Transport of passengers, with or without accompanied belongings by rail | 30 | 4.2(14%*30%) | 4.35(14.5%*30%) | 4.5(15%*30%) | |
| 4 | Bundled services by way of supply of food or any other article of human consumption or any drink, in a premises together with renting of such premises | 70 | 9.8(14%*70%) | 10.15(14.5%*70%) | 10.5(15%*70%) | |
| 5 | Transport of passengers by air, with or without accompanied belongings in – | |||||
| (i) economy class | 40 | 5.6(14%*40%) | 5.8(14.5%*40%) | 6(15%*40%) | ||
| (ii) other than economy class | 60 | 8.4(14%*60%) | 8.7(14.5%*60%) | 9(15%*60%) | ||
| 6 | Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes. | 60 | 8.4(14%*60%) | 8.7(14.5%*60%) | 9(15%*60%) | |
| 7 | Services of goods transport agency in relation to transportation of goods other than used household goods. | 30 | 4.2(14%*30%) | 4.35(14.5%*30%) | 4.5(15%*30%) | |
| 7A | Services of goods transport agency in relation to transportation of used household goods. | 40 | NA | Entry inserted vide NN 8/2016-ST dated 01.03.2016 w.e.f 01.04.2016.Applicable rate of ST w.e.f 01.04.2016 to 31.05.2016: 5.8 ( 14.5%*40%) | 6(15%*40%) | |
| 8 | Services provided by a foreman of chit fund in relation to chit | 70 | Entry inserted vide NN 8/2016-ST dated 01.03.2016 w.e.f. 01.04.2016, earlier omitted vide NN 08/2015-ST dated 01.03.2015.Applicable rate of ST w.e.f 01.04.2016 to 31.05.2016: 10.15 (14.5%*70%) | 10.5(15%*70%) | ||
| 9 | Renting of motorcab | 40 | 5.6(14%*40%) | 5.8(14.5%*40%) | 6(15%*40%) | |
| 9A | Transport of passengers, with or without accompanied belongings, by-a) a contract carriage other than motorcab
b) a radio taxi |
40 | 5.6(14%*40%) | 5.8(14.5%*40%) | 6(15%*40%) | |
| Service tax is proposed to be levied on service of transportation of passengers by air conditioned stage carriage @ 40% after abatement of 60% without input tax credit, with effect from 01.06.2016 [Deletion of Section 66D(o)(i) of the Finance Act and insertion of Entry No. 23(bb) of the Mega Exemption Notification w.e.f 01.06.2016] | ||||||
| 10 | Transport of goods in a vessel | 30 | 4.2(14%*30%) | 4.35(14.5%*30%) | 4.5(15%*30%) | |
| 11 | Services by a tour operator in relation to- | |||||
| (i) a tour, only for the purpose of arranging or booking accommodation for any person | 10 | 1.4(14%*10%) | 1.45(14.5%*10%) | 1.5(15%*10%) | ||
| (ii) tours other than (i) above | 40/30 | 5.6(14%*40%) | 15.11.2015 to 31.03.2016: 5.8(14.5%*40%)
01.04.2016 to 31.05.2016: 4.35 (14.5%*30%) |
4.5(15%*30%) | ||
| NN 8/2016-ST dated 01.03.2016 w.e.f. 01.04.2016: Abatement rates in respect of services by a tour operator in relation to a tour other than (i) has been rationalised from 75% (package tour) and 60% (others) to 70%. Consequently, the category of “package tour” stands deleted w.e.f. 01.04.2016 | ||||||
| 12 | Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority: | 30 | 4.2(14%*30%) | 4.35(14.5%*30%) | 4.5(15%*30%) | |
| Effective from 01.04.2016, a uniform abatement at the rate of 70% is prescribed for services of construction of complex, building, civil structure, or a part thereof, subject to fulfillment of the existing conditions. For the scenario till 31.03.2016: | ||||||
| (a) for a residential unit satisfying both the following conditions, namely:-(i) the carpet area of the unit is less than 2000 square feet; and
(ii) the amount charged for the unit is less than Rupees 1crore; |
25 | 3.5(14%*25%) | 15.11.2015 to 31.03.2016: 3.625 (14.5%*25%) | |||
| for other than the (a) above. | 30 | 4.2(14%*30%) | 15.11.2015 to 31.03.2016: 4.35 (14.5%*30%) | |||
Effective rates under the Reverse Charge Notification No. 30/2012-ST dated June 20, 2012 as amended
We are also summarizing herewith the effective rates of Service tax to be payable by Service Receiver (“SR”) under full Reverse Charge and by Service Provider (“SP”) & SR under the Partial/ Joint Reverse Charge, w.e.f June 1, 2016 after imposition of KKC, for easy digest:
| Sl. No | Description of a service | Rate of ST payable by the SP & SR: 01.06.2015 to 14.11.2015(%) | Effective rate of ST payable by the SP & SR: 15.11.2015 (after Introduction of SB Cess @ 0.5%) to 31.05.2016(%) | Effective rate of ST payable by the SP & SR: 01.06.2016 (after Introduction of KKC @ 0.5%)(%) |
| 1 | Services provided or agreed to be provided by an insurance agent to any person carrying on insurance business | SP: NilSR: 14 (100%) | SP: NilSR: 14.5 | SP: NilSR: 15 |
| 1A | Services provided or agreed to be provided by a recovery agent to a banking company or a financial institution or a non-banking financial company | SP: NilSR: 14 (100%) | SP: NilSR: 14.5 | SP: NilSR: 15 |
| 1B | Services provided or agreed to be provided by a mutual fund agent or distributor, to a mutual fund or asset management company | SP: NilSR: 14 (100%) | Omitted vide NN 18/2016-ST dated 01.03.2016 (w.e.f 01.04.2016From 15.11.2015 to 31.03.2016:
SP: Nil SR: 14.5 (100%) |
NA |
| 1C | Services provided or agreed to be provided by a selling or marketing agent of lottery tickets to a lottery distributor or selling agent of the State Government | SP: NilSR: 14 (100%) | SP: NilSR: 14.5 | SP: NilSR: 15 |
| 2 | Services of goods transport agency in relation to transportation of goods other than used household goods. | After availment of 70% abatement:SP: Nil
SR: 30% of 14% = 4.2 (i.e. 100%) |
After availment of 70% abatement:SP: Nil
SR: 4.35 (i.e. 14.5%*30%) |
After availment of 70% abatement: SP: Nil SR: 4.5 (i.e. 15%*30%) |
| 3 | Services provided or agreed to be provided by way of sponsorship to any body corporate or partnership firm located in the taxable territory | SP: NilSR: 14 (100%) | SP: NilSR: 14.5 | SP: NilSR: 15 |
| 4 | Services provided or agreed to be provided by an arbitral tribunal | SP: NilSR: 14 (100%) | SP: NilSR: 14.5 | SP: NilSR: 15 |
| 5 | Entry amended vide NN 18/2016-ST dated 01.03.2016, w.e.f 01.04.2016 to bring legal services provided by a senior advocate under forward charge | |||
| Prior to 01.04.2016: Services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services | SP: NilSR: 14 (100%) | SP: NilSR: 14.5 | SP: NilSR: 15 | |
| Post 01.04.2016: Services provided or agreed to be provided by a firm of advocates or an individual advocateother than a senior advocate by way of legal services | SP: NilSR: 14 (100%) | SP: NilSR: 14.5 | SP: NilSR: 15 | |
| 5A | Services provided or agreed to be provided by a director of a company or a body corporate to the said company or the body corporate | SP: NilSR: 14 (100%) | SP: NilSR: 14.5 | SP: NilSR: 15 |
| 6 | Any Services (w.e.f. 01.04.2016)/ Support services (till 31.03.2016) provided or agreed to be provided by Government or local authority excluding,- (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of Section 66D of the Finance Act | SP: NilSR: 14 (100%) | SP: NilSR: 14.5 | SP: NilSR: 15 |
| 7 | (a) Services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers onabated valueto any person who is not engaged in the similar line of business | After availment of 60% abatement: SP: NilSR:14%*40% = 5.6 (100%) |
After availment of 60% abatement:
SP: Nil SR: 5.8 (14.5%*40%) |
After availment of 60% abatement:SP: Nil
SR: 6 (15%*40%)
|
| (b) Services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers onnon-abated value to any person who is not engaged in the similar line of business | Without availment of 60% abatement:SP: 7
(14%*50%) SR: 7 (14%*50%)
|
Without availment of 60% abatement:SP:7.25(14.5%*50%)
SR:7.25(14.5%*50%) |
Without availment of 60% abatement:SP:7.5(15%*50%)
SR:7.5(15%*50%) |
|
| SP: Any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territorySR: Business entity registered as body corporate, located in the taxable territory | ||||
| 8 | Services provided or agreed to be provided by way of supply of manpower for any purpose or security services | SP: NilSR: 14 (100%) | SP: NilSR: 14.5 | SP: NilSR: 15 |
| SP: Any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territorySR: Business entity registered as body corporate, located in the taxable territory | ||||
| 9 | Services provided or agreed to be provided in service portion in execution of works contract: | |||
| In case of Original work | SP: 2.8 {50% of (14%*40%)}SR: 2.8 {50% of (14%*40%)}
|
SP: 2.9 {50% of (14.5%*40%)}SR: 2.9 {50% of (14.5%*40%)}
|
SP: 3 {50% of (15%*40%)}SR: 3 {50% of (15%*40%)}
|
|
| In all other cases | SP: 4.9 {50% of (14%*70%)}SR: 4.9 {50% of (14%*70%)} | SP: 5.075 {50% of (14.5%*70%)}SR: 5.075 {50% of (14.5%*70%)} | SP: 5.25 {50% of (15%*70%)}SR: 5.25 {50% of (15%*70%)} | |
| SP: Any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territorySR: Business entity registered as body corporate, located in the taxable territory | ||||
| 10 | Any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory | SP: NilSR: 14 (100%) | SP: NilSR: 14.5 | SP: NilSR: 15 |
| 11 | Any service provided or agreed to be provided by a person involving an aggregator in any manner | SP: NilSR: 14 (100%) | SP: NilSR: 14.5 | SP: NilSR: 15 |
Effective rates under the Service Tax (Determination of Value) Rules, 2006 [“the Service Tax Valuation Rules”]
We are also summarizing herewith the effective rates of Service tax to be payable under Rule 2A and Rule 2C of the Service Tax Valuation Rules, for easy digest:
| Relevant Rule(s) of the Service Tax Valuation Rules | Taxable per cent (%) | Effective rate of ST: 01.06.2015 to 14.11.2015(%) | Effective rate of ST: 15.11.2015 (after Introduction of SB Cess @ 0.5%) to 31.05.2016(%) | Effective rate of ST: 1.06.2016 (after Introduction of KKC @ 0.5%)(%) |
| Rule 2A – Determination of value of services involved in the execution of a Works contract | ||||
| In case of Works contracts entered into for execution of original works | 40 | 5.6(14%*40%)
|
5.8(14.5%*40%)
|
6(15%*40%)
|
| In all other cases | 70 | 9.8(14%*70%)
|
10.15 (14.5%*70%) | 10.5(15%*70%) |
| Rule 2C: Determination of value of service portion involved in supply of food or any other article of human consumption or any drink in a restaurant or as outdoor catering | ||||
| Service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity, at a Restaurant | 40 | 5.6(14%*40%) | 5.8(14.5%*40%) | 6(15%*40%) |
| Service portion in outdoor catering wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of such outdoor catering | 60 | 8.4(14%*60%) | 8.7(14.5%*60%) | 9(15%*60%) |