Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TDS :: VAT Audit :: due date for vat payment :: empanelment :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: VAT RATES :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: cpt :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
« Service Tax »
 Recovery Of Tax Under Model Gst Law
 Income Tax officials hunt for Mumbai’s ‘ghost’ assessee
 GST delay to impact Budget
 If GST not rolled out by Sept, there won't be taxation in country, warns Jaitley
 India’s E-Service Tax Will Add To Foreign Content Providers’ Woes
 GST Council to discuss model laws, tax jurisdiction today
 Tax Invoice Under GST
 Insurance may fall under 12% tax slab in GST, from 14% service tax currently
 GST draft makes it must for companies to pass tax benefit to consumers
 To speed passage, Government plans GST Bills as money Bills
 No service tax on train tickets booked through IRCTC till December 31

Service tax will be 15% from tomorrow
May, 31st 2016

Come Wednesday, consumers will now have to dole out an additional 0.5 per cent cess for various services, taking the total service tax to 15 per cent.

In the last budget, the total service tax was raised to 14 per cent from 12.36 per cent.

With the addition of the Krishi Kalyan Cess of 0.5 per cent, Swacchh Bharat Cess at 0.5 per cent, the total service tax will go up to 15 per cent from June 1. This is in addition to the VAT and service charges that are paid by customers.

Budget announcement

Henceforth, services like your internet and phone connection, restaurant bills, train and air travel, insurance, will attract the Krishi Kalyan Cess that was announced in the Union budget this year. KKC is aimed at improving agriculture in the country and for financing schemes in the sector.

For bills that are generated and paid before June 1, the KKC will not apply. For bills generated before June 1, but paid from June 1, the cess will be included. There are subtle variations in the levy of KKC and SBC, with the percentage fixed at 0.2 if one dines in a restaurant, and at 0.3 if it is for food services provided outside the restaurant, that is, home delivery. Similarly, variations exist across services.

“The government is finding new ways of taxing people. Already the cost of many essentials has gone up and from now there is an additional service tax for almost every service. Last week, my insurance company sent an SMS saying a KCC cess of 0.625 per cent will be levied on premium renewals from now on. Add to that phone bills, internet bills, etc... almost all bills are going to become more expensive,” Mrs. Girija, a retired government official said.

Bipin Sapra, Partner at Ernst & Young, said, “Service tax is an indirect tax and hence, supposed to be passed on to the consumers. This one per cent increase should have been increased as part of service tax. This cess is not even creditable for companies. The government is just increasing the cost of maintaining separate accounts, increasing transaction costs,” Mr. Sapra said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions