SSC
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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12.5%
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13.5%
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14%
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14.5%
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Detailed explanation-1: -Further, from November 15th, 2015, an additional Swachh Bharat Cess got added at the rate of 0.5%, which left the service tax at 14.5%. After the new proposal brought in during the 2016 Union Budget, the current service tax rate is 15% Which is effective from June 1, 2016.
Detailed explanation-2: -The rate of Service Tax was increased by the Ministry of Finance on May 14th 2015 and came into effect on June 1st 2015. The rate of Service Tax was increased from 12.36% to an all inclusive, flat 14%, which included Subsuming Education Cess and Secondary & Higher Secondary Education Cess.
Detailed explanation-3: -The Service Tax Rate applicable from 1st June 2016 is 15%. This rate is an inclusive rate and SHEC and Education Cess is not required to be charged above this. This Tax is required to be deposited on a Monthly/Quarterly basis.