New Effective Rate of Service Tax on Various Services after Abatement from 01.06.2015

After increment of Service Tax from 12.36% to 14% from 01.06.2015 the New Effective Rate of Service tax on various services after abatement are as follows:

Sr. No. Taxable Service Old Effective Rate New Effective rate
1 Financial leasing including hire purchase 1.236% 1.4%
2 Transport of goods by rail 3.708% 4.2%
3 Transport of passengers with or without accompanied belonging by rail 3.708% 4.2%
4 Supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any place specially arranged for organizing a function) together with renting of such premises 8.652% 9.8%
5 Transport of passengers by air, with or without   accompanied belongings 4.944% 5.6%
6 Renting of hotels , inns, guest houses, clubs, campsites, or other commercial places meant for residential or lodging purposes 7.416% 8.4%
7 Services of goods transport agency 3.708% 4.2%
8 Renting of any motor vehicle designed to carry passengers 4.944% 5.6%
9 Transport of goods in vessel 3.708% 4.2%
10 (i)  Tour service –package tour 3.09% 3.5%
(ii) Tour service –service solely of arranging or booking accommodation for any person in relation to a tour 1.236% 1.4%
(iii) Tour service – simple tour services 4.944% 5.6%
 11 Construction of a complex , building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly
(i)   for a residential unit having carpet area upto 2000 square feet and the amount charged is less than rupees one crore 3.09% 3.5%
(ii)  for other than (i) above 3.708% 4.2%

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(i) Execution of original works 4.944% 5.6%
(ii) In cases not covered above including maintenance or repair or reconditioning or restoration or servicing or any goods 8.652% 9.8%
(iii) Other works including maintenance, repair , completion and finishing services such as glazing , plastering, floor and wall tilling , installation of electrical fittings of an immovable property 8.652% 9.8%
13 Supply of food and drinks in restaurant or outdoor catering
(i)  Service provided by Restaurants 4.944% 5.6%
(ii) Services provided by outdoor caterer 7.416% 8.4%
14 Booking of air tickets by air travel agent 0.60% of basic fare Domestic booking 0.7%
1.2%. of basic fare International booking -1.4%
15 Life insurance service 3%  of Premium Charged First year -3.5%
1.50%  of Premium Charged Subsequent year – 1.75%

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Money changing service
(i) Gross amount of currency exchanged for an amount upto Rs. 100,000 0.12% of gross amount of currency exchanged(min.Rs.30) – 0.14% or Minimum Rs. 35/-
(ii) Gross amount of currency exchanged for an amount of rupees exceeding Rs. 100,000 and up to Rs. 10,00,000 Rs.120 + 0.06% of grossamount exceeding 1 lakh Rs. 140 and 0.07%
(iii)  Gross amount of currency exchanged for an amount of rupees exceeding Rs. 10,00,000 Rs.660 + 0.012% of gross amount exceeding 10 lakhs (max. Rs.6000) Rs. 770 and 0.014% or maximum of Rs. 7,000/-
17 Service provided by Lottery distributor and selling agent
a)      If the lottery or lottery scheme is one where the guaranteed prize payout is more than 80% 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 Rs. 8,200 on every Rs. 10 Lakh or part of Rs. 10 Lakh of aggregate face value of lottery tickets printed by the organizing State for a draw.
b)      If the lottery or lottery scheme is one where the guaranteed prize payout is less than 80% 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 Rs. 12,800 on every Rs. 10 Lakh or part of Rs. 10 Lakh of aggregate face value of lottery tickets printed by the organizing State for a draw

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