Service Tax is 14% Effective from June 01,2015

 

This is to inform that as per Finance Act 2015 read with Notification No 14/2015- dated May 19, 2015 issued by Ministry of Finance, Government of India, effective rate of service tax will be changed from current rate of 12.36% to 14%

People will have to shell out more from Monday June 01,2015 while using mobiles, eating out and travelling as the service tax rate goes up to 14 %

Mobile operators and credit card companies have already started sending messages to subscribers conveying the increase in service tax rate which will have a bearing on the bills

Finance Minister Arun Jaitley in his Budget had proposed to raise service tax from 12.36 % (including education cess) to 14%.
Arun Jaitley had proposed to raise the service tax rate to 14 per cent to facilitate a smooth transition to the Goods and Services Tax (GST) regime, which the government wants to roll out from April 2016.
Once implemented, GST will subsume service tax, excise and other local levies

Education cess, which is levied on service tax, will be subsumed in the service tax rate efeective from June 01,2015
Although the Budget also proposed a 2 per cent Swachh Bharat cess on selected services, the government is yet to come out with a notification in this regard.