Service tax rate would be 14% to come into effect from June 1, 2015

The new service tax rate of 14 per cent will come into effect from June 1, government on Tuesday said, in a move that will make eating out in restaurants, insurance and phone bills expensive, among many other things.

The service tax is currently levied at the rate 12.36 per cent including education cess. The Government via Notification No-14/2015 Service Tax, increased The rate has been to 14% subsuming Education Cess effective from 1st June, 2015.

Service tax is levied on all services, expect a small negative list.

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