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  • Service Tax

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    Sintu Singh
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    The document outlines changes to service tax rates in India. For life insurance, the service tax rate for the first year of premiums increases from 1.5% to 3%, while subsequent years remain at 1.5%. For money changing, the service tax rates increase for various amounts exchanged. The rates for distributors or selling agents of lotteries increase based on the guaranteed prize payout percentage. Additionally, the composition scheme rate for works contracts increases from 4% to 4.8%, and transport of air passengers switches to an ad valorem rate of 12% with a 60% abatement.

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    The document outlines changes to service tax rates in India. For life insurance, the service tax rate for the first year of premiums increases from 1.5% to 3%, while subsequent years remain at 1.5%. For money changing, the service tax rates increase for various amounts exchanged. The rates for distributors or selling agents of lotteries increase based on the guaranteed prize payout percentage. Additionally, the composition scheme rate for works contracts increases from 4% to 4.8%, and transport of air passengers switches to an ad valorem rate of 12% with a 60% abatement.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    4 views2 pages

    Service Tax

    Uploaded by

    Sintu Singh
    The document outlines changes to service tax rates in India. For life insurance, the service tax rate for the first year of premiums increases from 1.5% to 3%, while subsequent years remain at 1.5%. For money changing, the service tax rates increase for various amounts exchanged. The rates for distributors or selling agents of lotteries increase based on the guaranteed prize payout percentage. Additionally, the composition scheme rate for works contracts increases from 4% to 4.8%, and transport of air passengers switches to an ad valorem rate of 12% with a 60% abatement.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    New service tax

    a. For Life Insurance under Rule 6(7A)(ii) of Service Tax Rules, 1994 Gross Amount of Premium New Rate Old Rate Charged 1st year 3% 1.5% Subsequent Years 1.5% 1.5%

    b. For Money Changing under Rule 6(7B) of Service Tax Rules, 1994 Gross Amount of Currency New Rate Old Rate Exchanged 0.12% subject to minimum of 0.10 subject to minimum of Up to Rs. 1,00,000 Rs. 30 Rs. 25 For an amount exceeding Rs. 1,00,000 and up to Rs. Rs. 120 and 0.06% Rs. 100 and 0.05% 10,00,000 For an amount exceeding Rs. 660 and 0.012% subject to Rs. 550 and 0.01% subject Rs. 10,00,000 maximum of Rs. 6,000 to maximum of Rs. 5,000

    c. For Distributor or Selling Agent of Lotteries under Rule 6(7C) of Service Tax Rules, 1994 Guaranteed Prize Payout New Rate Old Rate Rs. 7,000/- on every Rs. 10 Rs. 6,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) Lakh (or part of Rs. 10 Lakh) More than 80% of aggregate face value of of aggregate face value of lottery tickets printed by the lottery tickets printed by the organising State for a draw organising State for a draw Rs. 11,000/- on every Rs. 10 Rs. 9,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) Lakh (or part of Rs. 10 Lakh) Less than 80% of aggregate face value of of aggregate face value of lottery tickets printed by the lottery tickets printed by the organising State for a draw organising State for a draw

    d. Works contract service:Rate of tax under Composition Scheme has been changed from 4% to 4.8% plus cess. e. Transport of passengers embarking in India for domestic and international journey by air :

    The dual rate structure of maximum service tax of Rupees 150 and Rupees 750 in case of economy class travel is being replaced by an ad valorem rate of twelve per cent. with abatement of sixty per cent subject to the condition that no credit on inputs and capital goods is taken. Therefore, w.e.f. effective rate of tax on journey by air would be 4.8%, subject to availement of abatement. Read How you can avoid 12.36 % Tax means cases where 10.30 % tax can be charged TAGS:12.36 service tax rate applicable from ? ,SERVICE TAX RATE 12.36, NEW SERVICE TAX RATES WEF 01.04.2012, INCREASE IN SERVICE TAX RATE IN BUDGET 2012, SERVICE TAX CURRENT RATES Download Finance Bill 2012 ,Budget Speech, Service tax ,Excise,Custom Notification and clause by clause analysis of union Budget 2012 ---Go to Union Budget 2012 Index-Read more: http://www.simpletaxindia.net/2012/03/rate-of-service-tax-wef-01042012budget.html#ixzz1qn75xKda

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