With the Presidents assent on Finance Act, 2015 on 14th May 2015, various Service Providers have started charging 14% Service Tax. We would like to bring this to notice of our readers that the rate will remain 12.36% till the date declared in the notification.
The relevant portion of Finance Act, 2015 is given below:
In section 66B of the 1994 Act, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, for the words “twelve per cent.”, the words fourteen per cent.” shall be substituted.
The notification will be available soon and till then rates of 12.36% is to be charged and not 14%. Also the Swach Bharat cess of 2% is to be charged only after the date notified and not from 14th May, 2015.
