Please note that the Department of Revenue vide Notification No. 14/2015-ST dated May 19, 2015 has notified increase in the rate of Service tax from 12.36 percent to 14 percent. The changes shall be applicable from 1st June 2015. The following are the highlights of the notification :
1. The base rate of Service Tax shall be 14 percent. 2. Education Cess and Higher Education Cess on service tax need not be charged.
Thus the effective rate shall be 14% (Fourteen percent) on value of services subject to abatements, if any.