Service Tax

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

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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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