Composition of Service tax rate

A new cess called the Krishi Kalyan Cess had been introduced to be levied at 0.5% on the value of all taxable services w.e.f June 1, 2016. This Cess would be levied over and above the Service Tax (ST) and the Swachh Bharat Cess (SBC).

Before 1st June 2016 – only Service Tax @ 14% and Swachh Bharat Cess @ 0.5% was applicable but from 1st June 2016 – Krishi Kalyan Cess is  also applicable and the effective ST had become 15%. The object of KKC is farmer welfare.

  • KKC shall be levied and collected as Service tax on all the taxable services at the rate of 0.5% on the value of taxable services.

  • Levy of KKC shall be in addition to any cess or Service tax leviable on taxable services.

A case study is given below showing levy of ST, SBC & KKC is given below assuming RS.5000 as value of a taxable service:

Particulars

Tax/ Cess (Rs.)

Value of taxable service (1)

5000

Add: Service tax @ 14% on (1)

700

Add: SB Cess @ 0.5% on (1)

25

Add: KKC @ 0.5% on (1)

25

Total:

5750

Every service provider is required to register for service tax if the value of ST exceeds Rs. 9 lakhs.

List of taxable service is given below.

Advertising

Air Travel Agent

Airport Services

Architect

ATM Operations, Management or Maintenance

Auctioneers’ service, other than auction of property under directions or orders of a count of or auction by Central Govt.

Authorized Service Station

Auxiliary to General Insurance

Auxiliary to  Life Insurance

Banking & Other Financial Services

Beauty Parlor

Broadcasting

Business Auxiliary Service

Business Exhibition Service

Business Support Service

Cable Operator

Cargo Handling

Chartered Accountant

Cleaning Service

Clearing & Forwarding Agent

Clubs and Associations

Commercial or Industrial Construction

Commercial Training or Coaching

Company Secretary

Construction of Residential Complex

Consulting Engineer

Convention Centre

Cost Accountant

Courier Services

Credit Card, Debit Card, Charge Card or other payment card related services

Credit Rating Agency

Custom House Agent

Dredging

Dry Cleaning

Erection, Commissioning or Installation

Event Management

Fashion Designer

Forward Contract Services

Franchise Service

Foreign Exchange Broker

General Insurance

Health Club & Fitness Centre

Intellectual Property Service

Interior Decorator

Internet Caf

Internet Telecommunication Service

Life Insurance

Mailing List Compilation and Mailing

Management Consultant

Maintenance or  Repair Service

Mandap Keeper

Manpower Recruitment or Supply  Agency

Market Research Agency

On-line Information & Database Access or Retrieval Service

Opinion Poll Service

Outdoor Caterer

Packaging Service

Pandal or Shamiana Services

Photography

Port Service ( Major Ports)

Port Services( Other Ports)

Public Relations Service

Rail Travel Agent

Real Estate Agent / Consultant

Recovery Agent

Registrar to an Issue

Rent – a – Cab Operator

Sale of space or time for  Advertisement, other than print media

Scientific or Technical Consultancy

Security Agency

Share Transfer Agent

Ship Management service

Site Preparation

Sound Recording

Sponsorship service provided to any body corporate or firm, other than sponsorship of sports event

Steamer Agent

Stock Broker

Storage & Warehousing

Survey & Exploration of Minerals

Survey and Map Making

T.V. & radio Programme Production Services

Technical Testing & Analysis

Technical Inspection & Certification Agency

Tour Operator

Transport of goods by Air

Transport of goods by Road

Transport of goods in containers by rail {‘other than Indian railway’  omitted w.e.f. 01.09.2009}

Transport of goods other than water, through Pipeline or other conduit

Transport of passengers embarking on international journey by air, other than economy class passengers

Transport of persons by cruise ship

Travel Agent other than Air & Rail Travel

Underwriter

Video Tape Production

Telecommunication

Renting of immovable property

Works contract

Content Development & Supply

Asset Management

Mining Services( Oil & Gas)

Design Services

Information Technology Software services

Investment Management for ULIP

Recognized Stock Exchange

Recognized Associations-Commodity Exchange Services

Clearing & Processing House services

Supply of Tangible Goods services

Cosmetic or Plastic Surgery Services

Transport of Coastal goods, Goods through National Waterways or Goods through Inland Waterways

Legal Consultancy Services

Promotion, marketing or organizing  of games of chance including lottery, bingo etc. services

Health services undertaken by Hospitals or Medical establishments

Maintenance of Medical Records services

Promotion of Brand of Goods, Services etc.

Services of Permitting Commercial Use or Exploitation of any event

Electricity Exchange Services

Copyright Services

Services provided by Builder in relation to preferential location, internal/external development etc

Services of Air-conditioned restaurants having license to service alcoholic beverages in relation to service of food or beverages.

Services of providing of accommodation in hotels / inns/ cubs/ guest houses/ campsite for a continuous period of less than three months