TIOL-DDT 2601 · Wednesday, 20 May 2015 · story 1 of 14

Service Tax at 14% from 1.6.2015. Education Cess Goes; Swachh Bharat Cess Does not come-yet

THE Finance Act 2015 was notified on 14th May 2015 and the consequential effects are here. The Joint Secretary, TRU has issued a D.O Letter clarifying the changes. TRU D.O.F.No.334/5/2015-TRU., Dated : May 19 2015

Service Tax rate increased to 14% from 1 st June 2015

No Education Cess on Service Tax from 1.6.2015

Service Tax will be levied on contract manufacturing/job work for production of potable liquor

While lottery per se is not subject to service tax, services in relation to lottery will be taxable.

Section 117 of the Finance Act proposes a Swachh Bharat Cess on all or any of the taxable services at a rate of 2% or lower. The date for this is not yet notified.

ST Penal provisions aligned with Central Excise - already effective from 14.05.2015