Effective Rates of Service tax after Swachh Bharat Cess

[CA Akash Phophalia]

Rates of service tax and compound rates since 1994

Sr. No.	Period	Rate of Service Tax	Rate of Education Cess	Rate of Secondary and Higher Secondary Education Cess	Swachh Bharat Cess
1	1-7-1994 to 13-5-2003	5%	Nil	Nil	Nil
2	14-5-2003 to 9-9-2004	8%	Nil	Nil	Nil
3	10-9-2004 to 17-4-2006	10%	2% of S.T.	Nil	Nil
4	18-4-2006 to 31-5-2007	12%	2% of S.T.	Nil	Nil
5	1-6-2007 to 23-2-2009	12%	2% of S.T.	1% of S.T.	Nil
6	24-2-2009 to 31-3-2012	10%	2% of S.T.	1% of S.T.	Nil
7	1-4-2012 to 31-5-2015	12%	2% of S.T.	1% of S.T.	Nil
8	1-6-2015 to 14-11-2015	14%	Nil	Nil	Nil
9	15-11-2015 onwards	14%	Nil	Nil	0.5%

Compound rates of service tax

Nature of Service	Compound Rate Till 31-5-2015	Compound Rates from 1-6-2015 to 14-11-2015	From 15-11-2015 onwards	Reference
1	2	3	4	5
Booking of tickets for Air Travel Provided by air travel agents	0.6% on the basic fare in case of domestic booking. 1.2% on the basic fare in case of international booking.	0.7% on the basic fare in case of domestic booking. 1.4% on the basic fare in case of international booking.	Same as coloumn 3 + Swachh Bharat Cess Swachh Bharat cess = (service tax liability)*0.5/14	Rule 6(7) of Service Tax Rules,1994.
Insurer carrying on life insurance business	On the gross premium charged from the policyholder reduced by the amount allocated for investment ans savings on behalf of policyholder. In all other cases, 3% of the premium charged in the first year and 1.5% of premium charged in subsequent year.	On the gross premium charged from the policyholder reduced by the amount allocated for investment ans savings on behalf of policyholder. In all other cases, 3.5% of the premium charged in the first year and 1.75% of premium charged in subsequent year	Same as coloumn 3 + Swachh Bharat Cess Swachh Bharat cess = (service tax liability)*0.5/14	Rule 6(7A) of Service Tax Rules,1994
Purchase or sale of foreign currency including money changing	0.12% of gross amount of currency exchanged for an amount up to ₹ 1 lac subject to minimum amount of ₹ 30. ₹ 120 and 0.06% of the gross amount of currency exchanged for an amount exceeding ₹ 1 lac and up to ₹ 10 lacs. ₹ 660 and 0.012% of gross amount of currency exchanged for an amount exceeding ₹ 10 lacs but subject to maximum amount of ₹ 6000.	0.14% of gross amount of currency exchanged for an amount up to ₹ 1 lac subject to minimum amount of ₹ 35. ₹ 140 and 0.07% of the gross amount of currency exchanged for an amount exceeding ₹ 1 lac and up to ₹ 10 lacs. ₹ 770 and 0.014% of gross amount of currency exchanged for an amount exceeding ₹ 10 lacs but subject to maximum amount of ₹ 7000.	Same as coloumn 3 + Swachh Bharat Cess Swachh Bharat cess = (service tax liability)*0.5/14	Rule 6(7B) of Service Tax Rules,1994
Distributors and selling agents or persons assisting in organizing lottery	₹ 7000 on every ₹ 10 lacs (or part of 10 lacs) of aggregate face value of lottery provided, where guaranteed price pay out is more than 80% ₹ 11000 on every ₹ 10 lacs (or part of ₹ 10 lacs) of lottery provided, where guaranteed price payout is less than 80%	₹ 8200 on every ₹ 10 lacs (or part of 10 lacs) of aggregate face value of lottery provided, where guaranteed price pay out is more than 80% ₹ 12800 on every ₹ 10 lacs (or part of ₹ 10 lacs) of lottery provided, where guaranteed price payout is less than 80%	Same as coloumn 3 + Swachh Bharat Cess Swachh Bharat cess = (service tax liability)*0.5/14	Rule 6(7C) of Service Tax Rules,1994
Education Cess and Secondary & Higher Secondary Education Cess	Charged separately	Cess has been abolished.

Effective Rates after Abatement (Including Cess)

Nature of Service	Compound Rate Till 31-5-2015	Compound Rates from 1-6-2015 to 14-11-2015	From 15-11-2015 onwards	Reference
Works Contract Option I Gross Amount – Value of goods Option II (a) 40% in case of Original Works (b) 70% in remaining cases	12.36%     4.944%   8.652%	14%     5.60%   9.80%	14.50%     5.80%   10.15%	Rule 2A of Service Tax (Determination of Value) Rules, 2006
Restaurant Services	4.944%	5.60%	5.80%	Rule 2C of Service Tax (Determination of Value) Rules, 2006
Outdoor Catering	7.416%	8.40%	8.70%	Rule 2C of Service Tax (Determination of Value) Rules, 2006
Financial Leasing and Hire Purchase	1.236%	1.40%	1.45%	Notification No 26/2012, Sl. No 1
Transport of goods by rail	3.708%	4.20%	4.35%	Notification No 26/2012, Sl. No 2
Transport of passengers by rail	3.708%	4.20%	4.35%	Notification No 26/2012, Sl. No 3
GTA	3.708%	4.20%	4.35%	Notification No 26/2012, Sl. No 7
Bundled Services (Food + Rent, etc)	8.652%	9.80%	10.15%	Notification No 26/2012, Sl. No 4
Transport of passengers by air Economy class Other class	4.944% 7.416%	5.60% 8.40%	5.80% 8.70%	Notification No 26/2012, Sl. No 5
Room Rent	7.416%	8.40%	8.70%	Notification No 26/2012, Sl. No 6
Renting of Motor Cab	4.944%	5.60%	5.80%	Notification No 26/2012, Sl. No 9
Transport of passengers by a contract carriage other than motor cab and by a radio taxi	4.944%	5.60%	5.80%	Notification No 26/2012, Sl. No 9
Transport of goods in a vessel	3.708%	4.20%	4.35%	Notification No 26/2012, Sl. No 10
Tour Operator Services (a) Package Tour (b) Booking Accomodation (c) Other than above	3.09% 1.236% 4.944%	3.50% 1.40% 5.60%	3.625% 1.45% 5.80%	Notification No 26/2012, Sl. No 11
Construction of complex (a) Residential complex of area less than 2000 sq ft and amount charged is less than ₹ 1 Crores. (b) Other complexes	3.09%     3.708%	3.50%     4.20%	3.625%     4.35%	Notification No 26/2012, Sl. No 12

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