Monday, June 27, 2016

Serive tax

SERVICE TAX
 Service tax is a tax levied by Central Government of India on services provided or to be provided excluding services covered under negative list and considering the Place of Provision of Services Rules, 2012 and collected as per Point of Taxation Rules, 2011 from the person liable to pay service tax.

The effective rate of Service Tax is increased from 14.50% to 15% (14% ST+ 0.50% Swachh Bharat Cess + 0.50% Krishi Kalyan Cess) by way of introducing Krishi Kalyan Cess @ 0.50% (w.e.f. 01-06-2016) on value of taxable services. Input credit of Krishi Kalyan Cess shall be allowed to be used for payment of the Krishi Kalyan Cess only. However it may be noted that there is no input credit allowed for Swachh Bharat Cess.

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