14% Service Tax rate not with effect from 1st April 2015

14% Service Tax rate not with effect from 1st April 2015


The department of Customs, Central Excise and Service Tax has announced that the 14% Service Tax Rate is not effective from 1st April 2015.

Notification is as below.

OFFICE OF THE COMMISSIONER
CUSTOMS, CENTRAL EXCISE AND SERVICE TAX
KNDRIYAUTPADSHULKHBHAWAN, TElANGKHEDI ROAD
CIVIL LINES, NAGPUR-440001

It is brought to the notice of the Public that the new Service Tax rate of 14% has been proposed In the Finance Bill, 2015 by the Hon’ble Finance Minister on 28-02-2015. The new Service Tax rate 14% is not effective immediately and shall come into effect only from a date to be notified later.

The existing rate of Service Tax is 12.36% (Inclusive Cesses)

It has come to the notice of this office that though the new Service Tax rate of 14% has not yet been given effect, some of the service tax providers have started billing & recovering the amount of Service Tax at the rate of 14% from their customers. This practice is not only completely illegal but amounts to collecting consideration from the general public which is not so required to be collected as Service Tax.

It is therefore appealed to, bring any ­such instance to the notice of Customs, Central Excise & Service Tax Department.

(Ashish Chandan)
Commissioner