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.