- New Rate of Service Tax @14% (including all cess) will be effective from 01st June, 2015
IMPORTANT TO NOTE: Additional 2% “Swachh Bharat Cess” is not notified yet, hence not leviable/chargeable.
- EFFECTIVE RATES IN CASE OF ABATEMENT (AS APPLICABLE) WILL BE:
| SN | Service Provided | Effective Dates | Effective Service Tax Rates | New Abatement Rate | Taxable |
| 1
|
Tour Operator Service | ||||
| – Accommodation Booking
|
w.e.f. 01st Jun’15 | 1.40% | 90% | 10% | |
| till 31st May’15 | 1.24% | 90% | 10% | ||
| – A Package tour
|
w.e.f. 01st Jun’15 | 3.50% | 75% | 25% | |
| till 31st May’15 | 3.09% | 75% | 25% | ||
| – Other tours
|
w.e.f. 01st Jun’15 | 5.60% | 60% | 40% | |
| till 31st May’15 | 4.94% | 60% | 40% | ||
| 2
|
Transport of goods by Rail service | w.e.f. 01st Jun’15 | 4.20% | 70% | 30% |
| till 31st May’15 | 3.71% | 70% | 30% | ||
| 3 | Hotel Service (club, pundal, shamiana) with supply of foods | w.e.f. 01st Jun’15 | 9.80% | 30% | 70% |
| till 31st May’15 | 8.65% | 30% | 70% | ||
| 4 | Renting of immovable property (Hotel, guest house etc.) | w.e.f. 01st Jun’15 | 8.40% | 40% | 60% |
| till 31st May’15 | 7.42% | 40% | 60% | ||
| 5 | Goods transport agency services | w.e.f. 01st Jun’15 | 4.20% | 70% | 30% |
| till 31st May’15 | 3.09% | 75% | 25% | ||
| 6 | Renting of motor vehicle designed to carry passengers (cab facility) | w.e.f. 01st Jun’15 | 5.60% | 60% | 40% |
| till 31st May’15 | 4.94% | 60% | 40% |
# Above is indicative list only.
- CLARIFICATION ON APPLICABILITY OF NEW AND OLD SERVICE TAX RATES:
| S N | Services Provided | Invoice Issued | Payment Received | Applicability of ST Rate |
| 1 | Before 01st Jun’15 | After 01st Jun’15 | After 01st Jun’15 | ST Rate @ 14% |
| 2 | After 01st Jun’15 | Before 01st Jun’15 (for advance) | After 01st Jun’15 | ST Rate @ 14% |
| 3 | After 01st Jun’15 | After 01st Jun’15 | Before 01st Jun’15 | ST Rate @ 14% (differential rate to be charged) |
| 4 | After 01st Jun’15 | Before 01st Jun’15 (for advance) | Before 01st Jun’15 | ST Rate @ 12.36% (no differential to be charged) |
| 5 | Before 01st Jun’15 | Before 01st Jun’15 | After 01st Jun’15 | ST Rate @ 12.36% |
| 6 | Before 01st Jun’15 | After 01st Jun’15 | Before 01st Jun’15 | ST Rate @ 12.36% |
Accordingly, the above scenario of advance payments may have exemplary situation and countered as under :-
| S N | Services Provided | Invoice Issued | Differential Payment |
| 1 | After 01st June | Before 01st June | No differential Payment |
| 2 | After 01st June | After 01st June | Differential Payment (14%-12.36%) |
- SERVICE TAX PAYABLE ON REIMBURSEMENT OF EXPENSES:
As per the revised section 67, now all Re-imbursements (cost incurred by the service provider on behalf of the client and charged thereof) are taxable under Service Tax. The only exemption remains is the payments made on behalf of clients as ‘Pure Agents’.
