Service Tax at a Glance

Rates of Service Tax

Sr.No. Period Rate of Service Tax Rate of Education Cess Rate of  Secondary & Higher Education Cess
1. Till 13.05.2003 5% Nil Nil
2. 14.05.2003 to 09.09.2004 8% Nil Nil
3. 10.09.2004 to 17.04.2006 10% 2% of the S.T. Nil
4. 18.04.2006 to 31.05.2007 12% 2% of the S.T. Nil
5. 01.06.2007 to 23.02.2009 12% 2% of S.T. 1% of S.T.
6. From 24.02.2009 10% 2% of S.T. 1% of S.T.
7 From 01.04.2012 12% 2% of S.T. 1% of S.T.
8 01.06.2015 to 14.11.2015 14% Nil Nil
9 15.11.2015 onwards 14.50% ** Nil Nil
10 01.06.2016 onwards 15%*** Nil Nil

**0.5% Swachh Bharat Cess on the value of “taxable services”. Thus, effective rate is 14.50%

***0.5% Swachh Bharat Cess & 0.5% Krishi Kalyan Cess on the value of “taxable services”.
Thus, effective rate is 15%.

Rates of Interest

Period Rate of Interest
01-07-1994 to 14-07-2001 1.50% p.m. and part thereof
15-07-2001 to 15-08-2002 24% p.a.
16-08-2002 to 09-09-2004 15% p.a.
10-09-2004 to 31-03-2011 13% p.a.
01-04-2011 onwards 18% p.a.
15% p.a. for assessees having turnover upto Rs. 60 lacs
01-10-20114 onwards Extent of Delay Simple Interest p.a.
Upto 6 months 18%
6-12 months 18% upto 6 months
24% for remaining period
More than 12 months 18% for first 6 months
24% for second 6 months
30% for remaining period
Note:
For assessees having turnover upto Rs. 60 lacs Concession of 3% will be available, thus, making the effective rates as 15%, 21% and 27% p.a.
01-4-2016 onwards Normal Rate:
15% p.a.
Note 1: For the tax payers with value of taxable service less than 60 lakh rupees in PFY, interest rate for delayed payment will be @12%
Penal Rate in case of tax collected but not deposited to exchequer:
24% p.a.

Payment of Service Tax:

i. Payable by Individual, Proprietary Concern and Partnership firm:

Payable on amounts received during the Quarter Payable By
April to June 6th July*
July to September 6th October*
October to December 6th January*
January to March 31st March*

*E-Payment of service tax is mandatory for all the assessees irrespective of Service Tax amount.

ii. Payable by persons other than Individual, Proprietary Concern, LLP and Partnership firm:

Payable on amounts received during the Month Payable By
April 6th May*
May 6th June*
June 6th July*
July 6th August*
August 6th September*
September 6th October*
October 6th November*
November 6th December*
December 6th January*
January 6th February*
February 6th March*
March 31st March*

*E-Payment of service tax is mandatory for all the assessees irrespective of Service Tax amount.

For both i and ii above, payment in Challan GAR-7 in one copy at designated bank branch.

Returns: For All Categories of Service Providers

For the Half yearly To be filed by
April to September 25th October
October to March 25th April

For late filing of ST-3 Return, Penalty ranging from Rs.500/- to Rs.2,000/- is leviable depending upon number of days by which the return is delayed.

w.e.f. 1st October, 2010, filing of returns by electronic means using the website www.aces.gov.in has been made mandatory.

Penalties

Sr. No. Nature of Default Penalty
1 Failure to pay Service Tax Rs.100 per day or 1% of tax p.m.,whichever is higher, limited to 100% of tax
2 Contravention of any provision for which no penalty is provided Not exceeding Rs.10000/-
3 Suppressing facts,value of taxable Service,fraud etc. 50% to 100% of tax amount depending on certain conditions as given in Sections 73(4A) and Proviso to Section 78
4 Late filing Return Delay upto 15 days Rs.500/-Delay > 15 days & < 30 days Rs.1000/-Delay > 30 days Rs.1000/- + Rs.100/- for each day but not exceeding Rs.20000/-
5 Delay in obtaining Service Tax registration certificate Upto Rs. 10000/-
6 Fails to keep, maintain or retain books of account and other documents as required Upto Rs.10000/-
7 Fails to pay Service Tax electronically Upto Rs.10000/-
8
(i) Furnish information called by an officer; or
(ii) Produce documents called for by a Central Excise Officer; or
(iii) Appear before the Central Excise Officer, when issued with a summon for appearance to give evidence or to produce a document in an inquiry
Upto Rs.10000/- or Rs.200/- per day tillfailure, whichever is higher
9 Issue invoice in accordance with the provision of the Act or rules made there under, with incorrect or incomplete details or fails to account for an invoice in his books of account Upto Rs.10000/-
10 Penalty on director, manager, secretary or any other officer of a company for specified contraventions Upto Rs.10000/-

Complete Reverse Charge Mechanism (w.e.f. 01-04-2015)

Sr. No. Description of Service Service Tax Payable by Service Provider Service Tax Payable by Service Receiver
1 Insurance Agent Service to any person carrying on Insurance business NIL 100%
2 Goods Transport Agency Service NIL 100%
3 Sponsorship Service to any body corporate or partnership firm located in taxable territory NIL 100%
4 Arbitral Tribunal Service to any business entity NIL 100%
5 Services of Individual Advocate or a Firm of Advocates to any business entity. NIL 100%
6 Services by Government or local authority by way of support services to any business entity. NIL 100%
7 Services by any person who is located in a non-taxable territory and received by any person located in the taxable territory. NIL 100%
8 Services by Director to a Company [w.e.f.07-08-2012] (other than employee – employer relationship) NIL 100%
9 Supply of Manpower Service (see Note 1) NIL 100%
10 Security Services (see Note 1) NIL 100%

(G) Partial Reverse Charge Mechanism (w.e.f. 01-04-2016)

Sr.

No.

 Description
of a Service		 Notes Service
Tax Payable by Service Provider		 Service
Tax Payable by Service Receiver
1 (a)
Renting of a Motor Vehicle designed to carry passengers (where
abatement is availed)		 1 & 2 NIL 100%
(b) Renting of a Motor Vehicle
designed to carry passengers (where abatement is not availed)		 50% 50%
3 Works Contract service 1 50% 50%

NOTES :
1. (a) The service provider should be an individual or HUF or partnership firm (whether registered or not) including AOP; and
(b) The service recipient should be a body corporate
2. In case of services of renting of a motor vehicle, the service recipient should be any person who is not engaged in similar line of business.