Service Tax 14% effective from 1 June, 2015

May 20, 2015 no comments Service Tax / Excise / Customs

Please note that vide Notification No. 14/2015 dated 19 May 2015 Government has notified that –

New Service Tax Rate of 14 % will be effective from 1 June 2015.

Education Cess and Higher Education Cess abolished with effect from 1 June 2015. Meaning thereby, the Service Tax will be charged @ 14% only, no EC and SHEC.

Date of levy of Swachh Bharat Cess is yet to be notified.

Now you may have question with regards to Services already provided, bills already raised in old rate, amount received in advance etc.

Following chart shall guide you with regard to the same.

Service Provided	Invoice Date	Payment Received	Rate of Service Tax
20/05/2015 i.e. Before 01/06/2015	01/06/2015 i.e. on or After 01/06/2015	01/06/2015 i.e. on or After 01/06/2015	14%
	20/05/2015 i.e. Before 01/06/2015	01/06/2015 i.e. on or After 01/06/2015	12.36%
	01/06/2015 i.e. on or After 01/06/2015	20/05/2015 i.e. Before 01/06/2015	12.36%
01/06/2015 i.e. on or After 01/06/2015	20/05/2015 i.e. Before 01/06/2015	01/06/2015 i.e. on or After 01/06/2015	14%
	20/05/2015 i.e. Before 01/06/2015	20/05/2015 i.e. Before 01/06/2015	12.36%
	01/06/2015 i.e. on or After 01/06/2015	20/05/2015 i.e. Before 01/06/2015	14%

Meaning thereby,

If service is provided on 20^th may 2015 i.e. before 1^st June 2015 And invoice is issued on or after 1^st June 2015 and payment is received on or after 1^st June 2015 than applicable service tax rate is 14%

If service is provided on 20^th may 2015 i.e. before 1^st June 2015 And invoice is issued before 1^st June 2015 and payment is received on or after 1^st June 2015 than applicable service tax rate is 12.36%

If service is provided on 20^th may 2015 i.e. before 1^st June 2015 And invoice is issued on or after 1^st June 2015 and payment is received before 1^st June 2015 than applicable service tax rate is 12.36%

If service is provide on or after 01/06/2015 and invoice is issued before 1^st June 2015 and payment is received on or after 01/06/2015 than applicable service tax rate is 14%

If service is provide on or after 01/06/2015 and invoice is issued before 1^st June 2015 and payment is received before 1^st June 2015 than applicable service tax rate is 12.36%

If service is provide on or after 01/06/2015 and invoice is issued on or after 1^st June 2015 and payment is received before 1^st June 2015 than applicable service tax rate is 14%.

Service Tax 14% effective from 1 June, 2015

Share Article

Related News

Join the discussion Cancel reply