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April 1, 2015

No Change in Service Tax Rates from 1st April 2015

As we all are aware that in the Budget 2015, Finance Minister Shri Arun Jaitely Ji have announced the increase in rate of Service Tax from 12.36% to 14%. There is news all around that from 1st April all the Services will become costly. But in reality nothing will be costly now but after enactment of Finance Bill, 2015.

Yes, you read it correct. There will be no hike in rate of Service Tax from Today but it will be increased only after enactment of Service Tax Act. In this regard relevant portion of D.O.F. No.334/5/2015-TRU dated 28th February 2015 is produced below:

“3.3 The Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015”.


The Institute of Chartered Accountants of India have also issued relevant clarification on the same. Read full clarification below:

ICAI/IDTC/GST/2015 1st April, 2015
Clarification- No change in rate of Service Tax
Finance bill, 2015 has proposed to increase effective rate of Service Tax from 12.36% to 14%. It is wrongly reported in some quarters that the effective date of change in rate of Service Tax is 1st April, 2015. It is hereby clarified that the change in the rate of Service Tax will be effective from the date to be notified after enactment of Finance Bill, 2015.

In this regard relevant portion of D.O.F. No.334/5/2015-TRU dated 28th February 2015 is produced below:

“3.3 The Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015”.

Hence, it is worthwhile to mention that there is no change in the rate of Service Tax w.e.f. 1st April 2015.
 


4 comments:

  1. What is service tax current Rate .???

    ReplyDelete
  2. Nice article.
    Now you can file your ITR filing, TDS return and GST return with Taxraahi online portal.
    Hope it will help.
    Thanks

    ReplyDelete

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