Friends,
1. The rate of service tax is being increased from ten per cent. to twelve per cent.
2. Consequent to change in the rate of service tax, changes are also being made in specific and compounding rates of tax for as per given on the official website.
3. Works contract service:-
Rate of tax under Composition Scheme has been changed from 4% to 4.8% plus cess.
4. Transport of passengers embarking in India for domestic and international journey by air :
The dual rate structure of maximum service tax of Rupees 150 and Rupees 750 in case of economy class travel is being replaced by an ad valor-em rate of twelve per cent. with abatement of sixty per cent subject to the condition that no credit on inputs and capital goods is taken. Therefore, w.e.f. effective rate of tax on journey by air would be 4.8%, subject to availability of abatement.
RATE OF SERVICE TAX (applicable w.e.f. 01.04.2012):
1. The rate of service tax is being increased from ten per cent. to twelve per cent.
2. Consequent to change in the rate of service tax, changes are also being made in specific and compounding rates of tax for as per given on the official website.
3. Works contract service:-
Rate of tax under Composition Scheme has been changed from 4% to 4.8% plus cess.
4. Transport of passengers embarking in India for domestic and international journey by air :
The dual rate structure of maximum service tax of Rupees 150 and Rupees 750 in case of economy class travel is being replaced by an ad valor-em rate of twelve per cent. with abatement of sixty per cent subject to the condition that no credit on inputs and capital goods is taken. Therefore, w.e.f. effective rate of tax on journey by air would be 4.8%, subject to availability of abatement.
