Service tax rate 14% effective from 1st june 2015

Serviced tax New Rate 14% Effective and Applicable from 1st June 2015

The Central Government has issued Notification No. 14/2015-ST dated 19-05-2015 (attached below) whereby Service Tax Rate has been notified to be increased from 12.36% to 14% effective from 01-06-2015. so its finally applicable for the year 15-16.

in a move that will make eating out in restaurants, insurance and phone bills expensive, among many other things. 

Corresponding changes in Rules 6 of Service Tax Rules, 1994 for increase in rate of Service Tax for:

1. Air Travel Agent,
2. Life Insurance Business,
3. Foreign Exchange Brokers and
4. Distributor & Selling Agent of Lottery

will also be applicable w.e.f. 1st June, 2015 (Notification No. 15/2015-ST).

A. For Air Travel Agent under Rule 6 (7) of Service Tax Rules, 1994
On Basic Fare	New Rate wef 01.06.2015	Old Rate
For Domestic Booking	0.70%	0.60%
For International Booking	1.4%.	1.2%.
B. For Life Insurance under Rule 6(7A)(ii) of Service Tax Rules, 1994
Gross Amount of Premium Charged	New Rate wef 01.06.2015	Old Rate
1st year	3.50%	3%
Subsequent Years	1.75%	1.50%
C For Money Changing under Rule 6(7B) of Service Tax Rules, 1994
Gross Amount of Currency Exchanged	New Rate wef 01.06.2015	Old Rate
Up to Rs. 1,00,000	0.14% subject to minimum of Rs. 35	0.12% subject to minimum of Rs. 30
For an amount exceeding Rs. 1,00,000 and up to Rs. 10,00,000	Rs. 140 and 0.07%	Rs. 120 and 0.06%
For an amount exceeding Rs. 10,00,000	Rs. 770 and 0.014% subject to maximum of Rs. 7,000	Rs. 660 and 0.012% subject to maximum of Rs. 6,000
D. For Distributor or Selling Agent of Lotteries under Rule 6(7C) of Service Tax Rules, 1994
Guaranteed Prize Payout	New Rate wef 01.06.2015	Old Rate
More than 80%	Rs. 8,200/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw	Rs. 7,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw
Less than 80%	Rs. 12,800/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw	Rs. 11,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw

In addition following changes will be applicable w.e.f. 1st June, 2015:

1. Service Tax on amusement facilities and Entertainment Events however exemption is available in respect of following services by way of right to admission to,-
   • exhibition of cinematographic film, circus, dance, or theatrical performance including drama or ballet;
   • recognised sporting event;
   • award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event, where the consideration for admission is not more than Rs. 500 per person.”
2. Service Tax on Liquor Job Work;

Date of applicability of following provisions is yet to be notified:

1. Expansion of scope of services provided by Government and Local Authority; and
2. Applicability of ‘Swachh Bharat Cess’.

Credit : Atul Gupta SimpleTaxIndia