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2 jun 2015

Effective Rate of Service Tax in case of Valuation and Abatement

The advancement of rate of Service Tax from 12.36% to 14% shall have a consequent effect on tax rates of all the services covered under abatement and valuation. For an easy reference of the rate of Service Tax applicable in case of certain services, following table can be referred:

Rate of Service Tax applicable

Sr. No. Taxable Service Old Effective Rate New Effective rate w.e.f 01/06/2015
1 Financial leasing including hire purchase 1.236% 1.4%
2 Transport of goods by rail 3.708% 4.2%
3 Transport of passengers with or without accompanied belonging by rail 3.708% 4.2%
4 Supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any place specially arranged for organizing a function) together with renting of such premises 8.652% 9.8%
5 Transport of passengers by air, with or without   accompanied belongings 4.944% 5.6%
6 Renting of hotels , inns, guest houses, clubs, campsites, or other commercial places meant for residential or lodging purposes 7.416% 8.4%
7 Services of goods transport agency 3.708% 4.2%
8 Renting of any motor vehicle designed to carry passengers 4.944% 5.6%
9 Transport of goods in vessel 3.708% 4.2%
10 (i)  Tour service –package tour 3.09% 3.5%
(ii) Tour service –service solely of arranging or booking accommodation for any person in relation to a tour 1.236% 1.4%
(iii) Tour service – simple tour services 4.944% 5.6%
 11 Construction of a complex , building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly
(i)   for a residential unit having carpet area upto 2000 square feet and the amount charged is less than rupees one crore 3.09% 3.5%
(ii)  for other than (i) above 3.708% 4.2%
  12 (i) Execution of original works 4.944% 5.6%
(ii) In cases not covered above including maintenance or repair or reconditioning or restoration or servicing or any goods 8.652% 9.8%
(iii) Other works including maintenance, repair , completion and finishing services such as glazing , plastering, floor and wall tilling , installation of electrical fittings of an immovable property 8.652% 9.8%
13 Supply of food and drinks in restaurant or outdoor catering
(i)  Service provided by Restaurants 4.944% 5.6%
(ii) Services provided by outdoor caterer 7.416% 8.4%
14 Booking of air tickets by air travel agent 0.60% of basic fare Domestic booking 0.7%
1.2%. of basic fare International booking -1.4%
15 Life insurance service 3%  of Premium Charged First year -3.5%
1.50%  of Premium Charged Subsequent year – 1.75%
  16 Money changing service
(i) Gross amount of currency exchanged for an amount upto Rs. 100,000 0.12% of gross amount of currency exchanged(min.Rs.30) - 0.14% or Minimum Rs. 35/-
(ii) Gross amount of currency exchanged for an amount of rupees exceeding Rs. 100,000 and up to Rs. 10,00,000 Rs.120 + 0.06% of gross amount exceeding 1 lakh Rs. 140 and 0.07%
(iii)  Gross amount of currency exchanged for an amount of rupees exceeding Rs. 10,00,000 Rs.660 + 0.012% of gross amount exceeding 10 lakhs (max. Rs.6000) Rs. 770 and 0.014% or maximum of Rs. 7,000/-
17 Service provided by Lottery distributor and selling agent
a)      If the lottery or lottery scheme is one where the guaranteed prize payout is more than 80% Rs. 7,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a   draw Rs. 8,200 on every Rs. 10 Lakh or part of Rs. 10 Lakh of aggregate face value of lottery tickets printed by the organizing State for a draw.
b)      If the lottery or lottery scheme is one where the guaranteed prize payout is less than 80% Rs. 11,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a   draw Rs. 12,800 on every Rs. 10 Lakh or part of Rs. 10 Lakh of aggregate face value of lottery tickets printed by the organizing State for a draw