At present, the rate of Service Tax is 12%, payable on the "gross value of taxable service". In addition to this, Education Cess is payable at the rate of 3% on the Service Tax amount. (2% P.EC & 1% H.EC). The rate of tax may change during Annual Budget by a Finance Act.
History of rates:
| Sl. No. |
Period |
Rate of Tax |
Rate of Education Cess |
|
1.
|
1994 to 13.05.2003
|
5%
|
Nil
|
|
2.
|
14.05.2003 to 09.09.2004
|
8%
|
Nil
|
|
3.
|
10.09.2004 to 17.04.2006
|
10%
|
2% of the S.T.
|
|
4.
|
18.04.2006 to 10.05.2007
|
12%
|
2% of the S.T.
|
|
5
|
11.05.2007 to till date
|
12%
|
2% of S.T. + 1% of the S.T.
(Secondary & Higher Education Cess
|
Indian Service Tax - Rates
