History of Service tax Rates and How to find which rate will apply?

GST & IDT
  • History of Service Tax Rates

History of Service Tax Rates since 01-07-1994 till date…

From TO Rate EC on ST SHEC on ST SBC on Service Value KKC on Service Value Effective Rate
               
01-07-1994 13-05-2003 5% 0 0 0 0 5%
14-05-2003 09-09-2004 8% 0 0 0 8%
10-09-2004 17-04-2006 10% 2% 0 0 10.20%
18-04-2006 10-05-2007 12% 2% 0 0 12.24%
11-05-2007 23-02-2009 12% 2% 1% 0 12.36%
24-02-2009 31-03-2012 10% 2% 1% 0 10.30%
01-04-2012 31-05-2015 12% 2% 1% 0 12.36%
01-06-2015 14-11-2015 14% 0 0 0 0 14%
15-11-2015 31-05-2016 14% 0 0 0.5% 0 14.5%
01-06-2016 Till date 14% 0 0 0.5% 0.5% 15%

 

  • How to find which rate will apply

Rule 4 of the POT Rules: Determination of Point of Taxation in case of change of effective rate of tax:

Now let us understand the provisions of Rule 4 of POT Rules with the help of the following table:

/Clause Sub-clause Condition Point of taxation
(a) When the taxable service has been provided before the change in the effective rate of tax:
(i) When invoice is raised after date of change of effective rate of tax and payment is also received after date of change of effective rate of tax. date of invoice or the date of receipt of payment whichever is earlier.
(ii) When invoice is raised before date of change of effective rate of tax but payment is received after date of change of effective rate of tax date of invoice
(iii) When invoice is raised after date of change of effective rate of tax but payment is received before date of change of effective rate of tax. date of receipt of payment
(b) When the service has been provided after the change of effective rate of tax:
(i) When invoice is raised before date of change of effective rate of tax but payment is received after date of change of effective rate of tax. date of receipt of payment
(ii) When invoice is raised before date of change of effective rate of tax and payment is also received before date of change of effective rate of tax date of invoice or the date of receipt of payment whichever is earlier.
(iii) When invoice is raised after date of change of effective rate of tax but payment is received before date of change of effective rate of tax date of invoice

Rule 7: Point of taxation when service tax is payable under reverse charge mechanism:

When service receiver is liable to pay service tax under RCM, the point of taxation shall be the date when the payment is made. There is one condition in this rule that the payment should be made within three months (w.e.f 01-10-2014 previously it was six months) of date of invoice. Provided that where the payment is not made within a period of three months of the date of invoice, the point of taxation shall be the date immediately following the said period of three months.