Sunday, 22 July 2012

Service Tax Rate


Increase in Service Tax Rate w.e.f 01.04.2012

With effect from 01.04.2012 by virtue of notification no. 2/2012 dated 17.03.2012 the rate of Service Tax has been increase from 10.30% to 12.36%.

Changes have also been made in respect of rate of tax in Service Tax Rule 1994 and Work Contract (Composition Scheme of Payment of Service Tax) Rule 2007. Hence, Special Rate of Tax w .e. f 01.04.2012 for Services in Execution of Work Contract shall be 4.80%.

The Special rate of tax payable in respect of life insurance business services (fall under Rule 6(7) of Service Tax Rule, 1994) has also been increase from 1.5% to 3% in respect of first year premium charged from policy holders. However, in all subsequent years, the rate of service tax has been retained at 1.50% of the amount of premium.

Applicability of Service Tax and Its Registration
Due Date of Payment of Service Tax
New Services Under Reverse Charge


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