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:
RATE
OF SERVICE TAX (applicable w.e.f. 01.04.2012):
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 :
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.
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