1st June 2015 is 14%. However applicable rate is different for many
services which may be subject to fulfillment of some conditions. This is mainly due to
material value or non-service element included in total value of these services.
This Chart will provide the effective rates on such
services.
Sr No.
|
Taxable service
|
Taxable Value
|
OldEffective Rate up to 31.05.2015
|
New Rate w.e.f.
01/06/2015
|
Condition
|
1
|
Financial leasing
including hire purchase
|
10%
|
1.236%
|
1.4%
|
NIL
|
2
|
Transport of goods
by rail
|
30%
|
3.708%
|
4.2%
|
NIL
|
3
|
Transport of
passengers with or without accompanied belonging by rail
|
30%
|
3.708%
|
4.2%
|
NIL
|
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
|
70%
|
8.652%
|
9.8%
|
Note(i)
|
5
|
Transport of
passengers by air, with or without accompanied belongings
|
40%
|
4.944%
|
5.6%
|
Note(ii)
|
6
|
Renting of hotels ,
inns, guest houses, clubs, campsites, or other commercial places meant for
residential or lodging purposes
|
60%
|
7.416%
|
8.4%
|
Note(ii)
|
7
|
Services of goods
transport agency
|
30%
|
3.708%
|
4.2%
|
Note(iii)
|
8
|
Renting of any motor
vehicle designed to carry passengers
|
40%
|
4.944%
|
5.6%
|
Note(iii)
|
9
|
Transport of goods
in vessel
|
30%
|
3.708%
|
4.2%
|
Note(iii)
|
10
|
(i)
Tour service –package tour
|
25%
|
3.09%
|
3.5%
|
Note(iii)&(iv)
|
(ii)
Tour service –service solely of arranging or booking accommodation for any
person in relation to a tour
|
10%
|
1.236%
|
1.4%
|
Note(iii),
(v)&(vi)
|
|
(iii)
Tour service – simple tour services
|
40%
|
4.944%
|
5.6%
|
Note(iii)&(iv)
|
|
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
|
25%
|
3.09%
|
3.5%
|
Note
(vii)&(viii)
|
|
(ii)
for other than (i) above
|
30%
|
3.708%
|
4.2%
|
Note
(vii)&(viii)
|
|
Note:
(i) cenvat
credit on any goods classifiable under chapters 1 to 22 of Central
Excise Tariff Act,1985 used for providing the taxable service, has not
been taken.
(ii) cenvat credit on
inputs and capital goods, used for providing the taxable service , has not been
taken .
(iii) cenvat
credit on inputs, capital goods and input services , used for providing the
taxable service, has not been taken .
(iv) The bill
issued for this purpose indicates that it is inclusive of charges for such a
tour.
(v) The invoice bill
or challan issued indicates that it is towards the charges for such
accommodation.
(vi) This exemption
shall not apply in such cases where the invoice, bill or challan issued by the
tour operator, in relation to a tour, only includes the service charges for
arranging or booking accommodation for any person and does not include the cost
of such accommodation.
(vii) Cenvat credits
on inputs used for providing the taxable service has not been taken.
(viii) The value of land is included in the amount charged from
the service receiver.
Sr no
|
Taxable service
|
Taxable Portion of
Total Value
|
Old Effective Rate up to 31.05.2015
|
New Ratew.e.f. 01/06/2015
|
12
|
Types of works
contracts
|
|||
(i) Execution of
original works
|
40%
|
4.944%
|
5.6%
|
|
(ii) In cases not
covered above including maintenance or repair or reconditioning or
restoration or servicing or any goods
|
70%
|
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
|
70%
|
8.652%
|
9.8%
|
Notes:
(i) “total amount” means the sum total of the
gross amount charged for the works contract and the fair market value of all
goods and services supplied in or in relation to the execution of the works
contract, whether or not supplied under the same contract , after deducting
(i)the amount charged for such goods or services , if any and (ii)the value
added tax or sales tax ,if any , levied thereon.
(ii) The fair market value of goods and
services so supplied may be determined in accordance with the generally accepted
accounting principles.
(iii) cenvat credit of
duty of excise paid on any inputs , used in or in relation to the said works
contract is not allowable.
Sr No
|
Taxable service
|
Taxable Portion of
Total Value
|
Old Effective Rate up to 31.05.2015
|
New Ratew.e.f. 01/06/2015
|
13
|
Supply of food and
drinks in restaurant or outdoor catering
|
|||
(i) Service
provided by Restaurants
|
40%
|
4.944%
|
5.6%
|
|
(ii) Services
provided by outdoor caterer
|
60%
|
7.416%
|
8.4%
|
Notes:
(i) “Total amount” means the sum total of the
gross amount charged and fair market value of all goods and services supplied
in or in relation to the supply of food or any other article of human
consumption or any other drink (whether or not in intoxicating), whether or not
supplied under the same contract or any other contract, after deducting (i) the
amount charged for such goods or services, if any and (ii) the value added tax
or sales tax, if any, levied thereon.
(ii) The fair market
value of goods and services so supplied may be determined in accordance with
the generally accepted accounting principles.
(iii)
cenvat credit of duties or cess paid on any goods classifiable under chapter 1
to 22 of the central excise tariff act, 1985 is not allowable.
Sr. No.
|
Taxable service
|
Old Effective Rate up to 31.05.2015
|
New Rate w.e.f.
01/06/2015
|
14
|
Booking of air
tickets by air travel agent
|
||
(i) Domestic booking
|
0.60% Of Basic Fare
|
0.70% Of Basic Fare
|
|
(ii) International
Booking
|
1.20% of Basic Fare
|
1.40% of Basic Fare
|
|
15
|
Life insurance
service
|
||
First year
|
3% of Premium
Charged
|
3.5% of Premium
Charged
|
|
Subsequent year
|
1.50% of
Premium Charged
|
1.75% of Premium
Charged
|
|
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 + 0.07% of
gross amount exceeding 1 lakh
|
|
(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 + 0.014% of
gross amount exceeding 10 lakhs (max. Rs.7000
|
|
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 organizing 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 organizing 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
|
(Author is a Past Chairman-Nagpur
Branch of ICAI and is a Practicing Chartered Accountant)
- See more at:
http://taxguru.in/service-tax/effective-service-tax-rates-applicable-01062015.html#sthash.Foy8NSpp.dpuf