New Service Tax Rate @14% Effective From June 1 2015

The new service tax rate of 14 per cent will come into effect from June 1, the government said in a notification.

In his Budget statement in February, Finance Minister Arun Jaitley had proposed a hike in effective service tax rate from 12.36 per cent (including cess) to 14 per cent.

The new rate subsumes the educational cess and secondary and higher secondary education cess that was levied over and above the tax rate of 12 per cent.