In the Union Budget,
2015, an increase in the rate of Service Tax from 12% to 14% had been proposed
from a date to be notified.
The Finance Bill, 2015 has since been enacted and
the Central Government has notified 1st June, 2015 as the date from which the
rate of 14% would become applicable. The provisions levying Education Cess and
Secondary and Higher Education Cess would also cease to have effect from same
date i.e. 1st June, 2015, as the same would be subsumed in the service tax rate
of 14%. Certain other changes have also been notified with effect from 1st
June, 2015.
However, the date of giving effect to the provisions relating to
imposition of a Swachh Bharat cess on all or any taxable service will be done
in due course.
PIB
