RATE OF SERVICE TAX w.e.f. 01.04.2012 Budget 2012

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RATE OF SERVICE TAX (applicable w.e.f. 01.04.2012):
Read How you can avoid 12.36 % Tax means cases where 10.30 % tax can be charged
1.     The rate of service tax is being increased from ten per cent. to twelve per cent.
2.     Consequent to change in the rate of service tax, changes are also being made in specific and compounding rates of tax for the following:



a. For Life Insurance under Rule 6(7A)(ii) of Service Tax Rules, 1994
Gross Amount of Premium Charged
New Rate
Old Rate
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 Exchanged
New Rate
Old Rate
Up to Rs. 1,00,000
0.12% subject to minimum of Rs. 30
0.10 subject to minimum of Rs. 25
For an amount exceeding Rs. 1,00,000 and up to Rs. 10,00,000
Rs. 120 and 0.06%
Rs. 100 and 0.05%
For an amount exceeding Rs. 10,00,000
Rs. 660 and 0.012% subject to maximum of Rs. 6,000
Rs. 550 and 0.01% subject 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
More than 80%
Rs. 7,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw
Rs. 6,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw
Less than 80%
Rs. 11,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw
Rs. 9,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the 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

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