Saturday, March 31, 2012

CHANGES IN RATE OF SERVICE TAX WEF 01.04.2012

CHANGES IN RATE OF SERVICE TAX 

1.1 Change in main rate of service tax: Notification No. 08/2009 dated 24.02.2009 was issued to reduce rate of service tax from 12% to 10%. The said notification has been rescinded by Notification no. 02/2012 dated 17.03.2012 w. e. f. 01.04.2012. Thus, now, w. e. f. 01.04.2012, effective rate of service tax (including education cess and S. H. Cess) has been increased to 12.36%. 

1.2 Rate of service tax under composition scheme: Notification No. 10/2012 dated 17.03.2012 increases the rate of service tax w. e. f. 01.04.2012 from 4% to 4.8% under Works Contract (Composition 
Scheme for Payment of Service Tax) Rules, 2007. 

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