AMENDEMENTS IN SERVICE TAX RATE
Following provisions will come into effect from 1st June, 2015.
2.1
Section 66B of the Finance Act, 1994, prescribes the service tax rate.
It has been amended by Section 108 of the Finance Act, 2015. The rate of
Service Tax is being increased from 12% to 14% (including cesses). The
increase in Service Tax rate will come into effect from 1st June, 2015. (Notification No.14/2015-Service Tax, dated 19th May, 2015 refers)
2.2
Sections 153 and 159 of the Finance Act, 2015 provide that section 95
of the Finance (No.2) Act, 2004 and section 140 of the Finance Act,
2007, levying Education Cess and Secondary and Higher Education Cess,
respectively, on taxable services, shall cease to have effect from a
date to be notified by the Central Government. The above provisions
levying Education Cess and Secondary and Higher Education Cess should
also cease to have effect from 1st June, 2015.
(Notification No.14/2015-Service Tax, dated 19th May, 2015 refers),
that is the date with effect from which the increase in the Service Tax
rate comes into effect.
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