New Service Tax Rate

The new service tax rate of 14% is applicable from 1st June, 2015. This has been brought about by a notification dated 19th May, 2015 issued by the Service Tax department. The notification is worded in official legalese so in order to understand this notification you have to visit another notification issued on 1st March, 2015. Would it not have been better for the government to clearly state that the service tax rate of 14% becomes applicable from 1st June, 2015.

However, the sum effect is that new service tax rate comes into force on 1st June, 2015. It is a consolidated rate of 14% without there being any cess in it. So the education cess and secondary education cess has been removed. It is a straight rate of 14%.

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