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:
- Air Travel Agent,
- Life Insurance Business,
- Foreign Exchange Brokers and
- 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:
- 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.”
- Service Tax on Liquor Job Work;
Date of applicability of following provisions is yet to be notified:
- Expansion of scope of services provided by Government and Local Authority; and
- Applicability of ‘Swachh Bharat Cess’.
Credit : Atul Gupta SimpleTaxIndia