Service Tax Rate Chart effective from 15th November 2015

Central Government has vide No. Notification No. 21/2015-ST datedNovember 6, 2015 has notified that Swachh Bharat Cess (SBC) is applicable on all taxable services from 15.11.2015 this has increased the service tax rate to 14.50% and has also resulted in Changes in Service Tax Rates from 15.11.2015 on Various Services which are under abatement or on which reverse Charge Mechanism is applicable.

In this Article we have compiled Service Tax rates Post applicability of Swachh Bharat Cess 

This Chart will provide the effective Rate of Service Tax With Effect from 15.11.2015

Sr. No.	Taxable service	Taxable Value	Rate wef 15.11.2015	Rate w.e.f. 01/06/2015 to 14.11.2015	Old Effective Rate up to 31.05.2015	Condition
1	Financial leasing including hire purchase	10%	1.45%	1.40%	1.24%	NIL
2	Transport of goods by rail	30%	4.35%	4.20%	3.71%	NIL
3	Transport of passengers with or without accompanied belonging by rail	30%	4.35%	4.20%	3.71%	NIL
4	Supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any place specially arranged for organizing a function) together with renting of such premises	70%	10.15%	9.80%	8.65%	Note(i)
5	Transport of passengers by air, with or without   accompanied belongings	40%	5.80%	5.60%	4.94%	Note(ii)
6	Renting of hotels , inns, guest houses, clubs, campsites, or other commercial places meant for residential or lodging purposes	60%	8.70%	8.40%	7.42%	Note(ii)
7	Services of goods transport agency	30%	4.35%	4.20%	3.71%	Note(iii)
8	Renting of any motor vehicle designed to carry passengers	40%	5.80%	5.60%	4.94%	Note(iii)
9	Transport of goods in vessel	30%	4.35%	4.20%	3.71%	Note(iii)
10	(i)           Tour service –package tour	25%	3.625%	3.50%	3.09%	Note(iii)&(iv)
	(ii)         Tour service –service solely of arranging or booking accommodation for any person in relation to a tour	10%	1.45%	1.40%	1.24%	Note(iii), (v)&(vi)
	(iii)       Tour service – simple tour services	40%	5.80%	5.60%	4.94%	Note(iii)&(iv)
11	Construction of a complex , building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly
	(i)           for a residential unit having carpet area upto 2000 square feet and the amount charged is less than rupees one crore	25%	3.625%	3.50%	3.09%	Note (vii)&(viii)
	(ii)         for other than (i) above	30%	4.35%	4.20%	3.71%	Note (vii)&(viii)

Note:

(i) cenvat  credit on any goods classifiable under  chapters  1 to 22 of Central Excise Tariff  Act,1985 used for providing the taxable service, has not been taken.

(ii) cenvat credit on inputs and capital goods, used for providing the taxable service , has not been taken .

(iii)  cenvat credit on inputs, capital goods and input services , used for providing the taxable service, has not been taken.

(iv)  The bill issued for this purpose indicates that it is inclusive of charges for such a tour.

(v) The invoice bill or challan issued indicates that it is towards the charges for such accommodation.

(vi) This exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation.

(vii) Cenvat credits on inputs used for providing the taxable service has not been taken.

(viii) The value of land is included in the amount charged from the service receiver.

Sr no	Taxable service	Taxable Portion of Total Value	Rate wef 15.11.2015	New Rate w.e.f. 01/06/2015 to 14/11/2015	Old Effective Rate up to 31.05.2015
12	Types of works contracts
	(i) Execution of original works	40%	5.80%	5.60%	4.94%
	(ii) In cases not covered above including maintenance or repair or reconditioning or restoration or servicing or any goods	70%	10.15%	9.80%	8.65%
	(iii)Other works including maintenance, repair , completion and finishing services such as glazing , plastering, floor and wall tilling , installation of electrical fittings of an immovable property	70%	10.15%	9.80%	8.65%

Notes:

(i) “total amount” means the sum total of the gross amount charged for the works contract and the fair market value of all goods and services supplied in or in relation to the execution of the works contract, whether or not supplied under the same contract , after deducting (i)the amount charged for such goods or services , if any and (ii)the value added tax or sales tax ,if any , levied thereon.

(ii) The fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.

(iii) cenvat credit of duty of excise paid on any inputs , used in or in relation to the said works contract is not allowable.

Sr No	Taxable service	Taxable Portion of Total Value	Rate wef 15.11.2015	Rate w.e.f. 01/06/2015 to 14.11.2015	Old Effective Rate up to 31.05.2015
13	Supply of food and drinks in restaurant or outdoor catering
	(i)  Service provided by Restaurants	40%	5.80%	5.60%	4.94%
	(ii)  Services provided by outdoor caterer	60%	8.70%	8.40%	7.42%

Notes:

(i) “Total amount” means the sum total of the gross amount charged and fair market value of all goods and services supplied in or in relation to the supply of food or any other article of human consumption or any other drink (whether or not in intoxicating), whether or not supplied under the same contract or any other contract, after deducting (i) the amount charged for such goods or services, if any and (ii) the value added tax or sales tax, if any, levied thereon.

(ii) The fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.

(iii)    cenvat credit of duties or cess paid on any goods classifiable under chapter 1 to 22 of the central excise tariff act, 1985 is not allowable.

In absence of any clarification/Clarity on impact of Swachh Bharat Cess on Service Tax Rates  on Air Travel, Life Insurance, Money Changing & Lotteries Services which are covered rules 6(7), 6(7A), 6(7B) and 6(7C) of the Service Tax Rules, 1994 although here is no specific exemption for such services. We will compile the same once we get the clarity on the same.

Disclaimer- Please Check the Relevant Notifications, Act, Rules before relying on the above information.

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