The rate of service tax is being increased from ten per cent. to twelve percent.

Consequent to change in the rate of service tax, changes are also being made in specific and compounding rates of tax for the following:

a. For Life Insurance under Gross Amount of Premium Charged 1st year Subsequent Years

Rule 6(7A)(ii) of Service Tax Rules, 1994 New Rate 3% 1.5%

b. For Money Changing under Rule 6(7B) of Service Tax Rules, 1994 Gross Amount of Currency Exchanged New Rate Up to Rs. 1,00,000 0.12% subject to minimum of Rs. 30 For an amount exceeding Rs. 1,00,000 & up to Rs. 120 and 0.06% Rs. 10,00,000 For an amount exceeding Rs. 10,00,000 Rs. 660 and 0.012% subject to maximum of Rs. 6,000

c. For Distributor or Selling Agent of Lotteries under Rule 6(7C) of Service Tax Rules, 1994 Guaranteed Prize New Rate Payout Rs. 7,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value More than 80% of lottery tickets printed by the organising State for a draw Rs. 11,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value Less than 80% of lottery tickets printed by the organising State for a draw d. Works contract service:Rate of tax under Composition Scheme has been changed from 4% to 4.8% plus cess. e. Transport of passengers embarking in India for domestic and international journey by air : The dual rate structure of maximum service tax of Rupees 150 and Rupees 750 in case of economy class travel is being replaced by an ad valorem rate of twelve per cent. with abatement of sixty per cent subject to the condition that no credit on inputs and capital goods is taken. Therefore, w.e.f. effective rate of tax on journey by air would be 4.8%, subject to availement of abatement.
Read How you can avoid 12.36 % Tax means cases where 10.30 % tax can be charged TAGS:12.36 service tax rate applicable from ? ,SERVICE TAX RATE 12.36, NEW SERVICE TAX RATES WEF 01.04.2012, INCREASE IN SERVICE TAX RATE IN BUDGET 2012, SERVICE TAX CURRENT RATES