Service tax rates increased from 12.36 to 14 percent-from when the new rates are applicable?
His greatness, finance minister of India has increased the service tax rates from existing 12.36% to 14%. What is the implementation date for new rates?
From when service providers have to charge 14% instead of 12.36%?
Date of applicability is yet to be announced. A circular/notification will soon be provided to implement the new rates. Date of application is yet not announced.
Amendments to be effective from a date to be notified after Finance Bill receives the assent of the President
1. Service Tax Rate The rate of Service Tax is being increased from 12% plus Education Cesses i.e. 12.36% to 14%
2.Swachh Bharat Cess Central Government has been empowered to impose a Swachh Bharat Cess on all or any of the taxable services at a rate of 2% on the value of such taxable services. This cess shall be levied from such date as may be notified by the Central Government after the enactment of the Finance Bill, 2015
EXCISE DUTY :
Education Cess and Secondary & Higher Education Cess leviable on excisable goods fully exempted. Further, standard ad valorem rate of excise duty increased from 12% to 12.5%.
One more Point is What about The Assessee who has Credit unutilized in Cess.
How it will be adjusted?
I dont think cess is removed. Cess is still applicable and 14% is including Cess.