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) |
|
