New service tax rate not yet in force – CBEC clarifies
16 April, 2015
clarified by Circular No.
183/02/2015-S.T., dated 10-4-2015 that the new rate of service tax i.e. 14%
shall come into effect from a date to be notified by the Central
Government after the enactment of the Finance Bill, 2015. This date for new
rate will be notified in due course after enactment.
It has been further clarified that no change
has been made in Rule 2C of the Service Tax (Determination of Value) Rules,
2006 in respect of services provided in relation to serving of foods or
beverages by a restaurant, eating joint or a mess and therefore, service tax on
such services continues to be chargeable @12.36% on 40% of the gross amount
charged (i.e. @4.944%) till the date from which new rate of service tax comes