Will we see multiple service tax rates?

 

BUDGET 2017 – Budget 2016 had hiked the service tax by 0.5 per cent to 15 per cent. The GST Council had already agreed on a four-slab structure as 0, 5, 12, 18 and 28 per cent, reports Economic Times

Budget 2016 had proposed to impose a cess, called the Krishi Kalyan Cess, at 0.5 per cent on all taxable services. The new effective service tax is settled at 15 per cent. While presenting Budget 2015, the FM had increased the service tax rate from 12.36 to 14 per cent.

This new rate of service tax at 14 per cent was applicable from June 1, 2015. Moreover, from November 15, 2015, Swachh Bharat Cess at 0.5 per cent also got applicable. Therefore, the effective rate of service tax is currently at 14.5 per cent with effect from November 15, 2015. READ MORE

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s