Changes in Service Tax by Union Budget 2016-17 (Finance Act 2016) Finance Act 2016 (No. 28 of 2016).pdf 1.Rate of Service Tax The effective rate of Service Tax is increased from 14.50% to 15% (14% ST+ 0.50% Swachh Bharat Cess + 0.50% Krishi Kalyan Cess) by way of introducing Krishi Kalyan Cess @ 0.50% (w.e.f. 01-06-2016) on value of taxable services. Input credit of Krishi Kalyan Cess shall be allowed to be used for payment of the Krishi Kalyan Cess only. However it may be noted that there is no input credit allowed for Swachh Bharat Cess. Accounting Code for Payment of Krishi Kalyan Cess (Circular No. 194/04/2016-ST) Tax Collection Interest Penalties 00441509 00441510 00441512 2.Changes in Point of Taxation
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