SERVICE TAX RATE CHART EXEMPTION LIMIT ,ABATEMENT RATE CHART REVERSE CHARGE CHART

10 useful charts related to Service tax is given below.Service Tax rate Chart since inception and as applicable for the financial year 20...

10 useful charts related to Service tax is given below.Service Tax rate Chart since inception and as applicable for the financial year 2013-14 as per Service tax Act and Rules in India, Exemption limit for Small scale service provider,Due Date to deposit service tax in case of partnership firms and individual and due date for payment chart for other persons  ,Various abatement available in service Tax chart , Service Covered under reverse charge chart.Person covered under various reverse charge schemes, Due date to deposit service tax return , Interest rate on service tax delayed payment , Penalty on late filing of service tax return .Various composition schemes available under the service tax rules ,like Air travel agent ,Life insurance ,outdoor caterer, Restaurant services, Works contract services ,  All chart related to service tax are given at one place.

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1.SERVICE TAX RATE CHART FROM 01.07.1994 TO FINANCIAL YEAR 2013-14

Period	BASIC RATE %	S.T.	HEC	Eff rate
01/07/1994 to 13/05/2003	5	0	0	5%
14/05/2003 to 09/09/2004	8	0	0	8%
10/09/2004 to 17/04/2006	10	2	0	12%
18/04/2006 to 10/05/2007	12	2	0	12.24%
11/05/2007 to 23/02/2009	12	2	1	12.36%
24/02/2009 to 31/03/2012	10	2	1	10.30%
01/04/2012 to DATE	12	2	1	12.36%

 RATE OF SERVICE TAX (applicable w.e.f. 01.04.2012):(also applicable for Fy 2013-14)

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

2. 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 Rule 6(7A)(ii) of Service Tax Rules, 1994
Gross Amount of Premium Charged	New Rate	Old Rate
1st year	3%	1.50%
Subsequent Years	1.50%	1.50%
b. For Money Changing under Rule 6(7B) of Service Tax Rules, 1994
Gross Amount of Currency Exchanged	New Rate	Old Rate
Up to Rs. 1,00,000	0.12% subject to minimum of Rs. 30	0.10 subject to minimum of Rs. 25
For an amount exceeding Rs. 1,00,000 and up to Rs. 10,00,000	Rs. 120 and 0.06%	Rs. 100 and 0.05%
For an amount exceeding Rs. 10,00,000	Rs. 660 and 0.012% subject to maximum of Rs. 6,000	Rs. 550 and 0.01% subject to maximum of Rs. 5,000
c. For Distributor or Selling Agent of Lotteries under Rule 6(7C) of Service Tax Rules, 1994
Guaranteed Prize Payout	New Rate	Old Rate
More than 80%	Rs. 7,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw	Rs. 6,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw
Less than 80%	Rs. 11,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw	Rs. 9,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw

d. 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.

1A Various Composition scheme available under Service Tax 

Taxable Service	Composition Scheme	Conditions	Relevant Notification/Rule
Air Travel Agent	Option to pay service tax at flat rate on ‘basic fare’ @ 0.6% in case of domestic booking and 1.2% in case of international booking – plus education cess (Composition Scheme)	No restriction on availment of Cenvat credit	Rule 6(7) of Service Tax Rules
Foreign Currency – sale and purchase	At slab rates prescribed under rule 6(7B)on total gross amount of currency exchanged (Optional Composition Scheme)	No restriction on availment of Cenvat Credit	Rule 6(7B) of Service Tax Rules
Foreign Currency – sale and purchase	Value is difference between  buying or selling rate and RBI reference rate (Normal Scheme of valuation)	No restriction on availment of Cenvat Credit	Rule 2B of Service Tax (Determination of Value)  Rules
Life Insurance	3% of net premium (excluding investment or savings part, if such amount is informed to policy holder)  – If not so informed, 3% in first year and 1.5% in subsequent years(Composition Scheme)	No restriction on availment of Cenvat Credit	Rule 6(7A) of Service Tax Rules
Outdoor caterer	Tax on 60% amount excluding State Vat (Composition Scheme) (Till 1-7-2012, it was 50%)	Cenvat credit of input services and capital goods is available. Cenvat credit on food items (covered under Chapters 1 to 22 of CETA) not available. Cenvat credit of other inputs is available.	Rule 2C of Service Tax (Determination of Value) Rules
Restaurant service	Tax on 40% amount excluding State Vat (Composition Scheme) (Till 1-7-2012, it was 30%)	Cenvat credit of input services and capital goods is available. Cenvat credit of excise duty on food items (covered under Chapters 1 to 22 of CETA) not available. Cenvat credit of other inputs is available.	Rule 2C of Service Tax (Determination of Value) Rules
Works Contract Service(read more details here)	Tax on value of service calculated as per rule 2A(i) or Tax on 30%/40%/60% of gross amount charged as specified in rule 2A(ii) (Composition Scheme)	Cenvat credit of input services and capital goods is available. Cenvat credit of excise duty on goods, the property of which is transferred is not available. Cenvat credit of other inputs (like consumables) is available	Rule 2A of Service Tax (Determination of Value) Rules
	Tax on 30% of amount charged including fair market value of all goods and services supplied by recipient (termed as Abatement Scheme – actually it is composition scheme)

2.Exemption Limit for Small service provider

Small Service Provider Tax exemption Limits
Effective Date	Amount	Notification
W.e.f 1/4/2005	04 lacs	6/2005 dated 01.03.2005
W.e.f. 1/4/2007	08 lacs	4/2007 Dated 01.03.2008
W.e.f 1/4/2008	10 lacs	8/2008 dated 01.03.2008
W.e.f 1/7/2012	10 lacs	33/2012 Dated 20.06.2012

Read Who can avail service tax exemption Limit and Who can not avail service tax exemption limit

 3.Service Tax return due Date for all person :

SERVICE TAX RETURN DUE DATE CHART (GENERAL)
APRIL TO SEPTEMBER	25-Oct
OCTOBER TO MARCH	25-Apr
SERVICE TAX RETURN DUE DATE CHART FY 2012-13
01.04.2012 TO 30.06.2012	25.11.2012
01.07.2012 TO 30.09.2012	30.04.2013
01.10.2012 TO 31.03.2013	31.08.2013

update :Due date to file service tax return from 10/2012 to 03/2013 extended to 31.08.2013 from 25.04.2013

4.Penalty on late filing of service Tax return 

After enactment of Finance Bill 2011, the following position has emerge out:

Period of Delay	Penalty/late fee before finance bill 2011	Penalty/late fee After finance bill 2011
for delay up to 15 days	INR 500	INR 500
for delay beyond 15 days but up to 30 days	INR 1,000	INR 1,000
for delay beyond 30 days	INR 1,000 + INR 100 per day (from 31st daysubject to a maximum amount of Rs 2000.	INR 1,000 + INR 100 per day (from 31st daysubject to a maximum amount of Rs 20000.

‘Provided also that where the gross amount of service tax payable is nil, the Central Excise officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty’.

Read more:about penalty on late filing of service tax return 

 5.Service tax payment Due date 

Category	Frequency	Due Dates
In case of Individuals, proprietary Firms & Partnership Firms	Quarterly as mentioned below -	(6th for internet payment)
	( i ) For Q.E. 30th June	- by 5th July
	(ii ) For Q.E. 30th Sept.	- by 5th Oct
	( iii ) For Q.E. 31St Dec.	- by 5th Jan.
	( iv ) For Q.E. 31st March	- by 31st March
Others (e.g. Companies,Societies, Trusts etc.)	Monthly	By 5th of the month immediately following the month .However, in case of March, the payment should be made by 31st March.

6.Interest on late payment of service Tax 

The new rate of interest of 18% will be applicable from 1st April, 2011.However interest rate is reduced by 3 % for turnover up to 60 Lacs

“Provided that in the case of a service provider, whose value of taxable services provided in a financial year does not exceed sixty lakh rupees during any of the financial years covered by the notice issued under sub-section (3) of section 73A or during the last preceding financial year, as the case may be, such rate of interest shall be reduced by three percent per annum.”

So the reduced interest rate of 15% (18%-3%) will be applicable in case where the value of taxable services provided in a financial year is not more that Rs. 60 lakh. But this provision will have a limited application as only to the small service providers but no relief to the large tax payers has been provided.


7.Abatement Rates on various services

Sr No.	Description of taxable service	% Abatement	% taxable	Conditions
1	2	3	4	5
1	Services in relation to financial leasing including hire purchase	90	10	Nil.
2	Transport of goods by rail	70	30	Nil.
3	Transport of passengers, with  or without accompanied belongings by rail	70	30	Nil.
4	Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (   including hotel, convention center, club, pandal,shamiana or any other place, specially arranged for organizing a function) together with renting of such premises	30	70	(i) CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
5	Transport of passengers by air, with or without accompanied belongings	60	40	CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
6	Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes.	40	60	Same as above.
7	Services of goods transport agency in relation to transportation of goods.	75	25	CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
8	Services provided in relation to chit	30	70	Same as above.
9	Renting of any motor vehicle designed to carry passengers	60	40	Same as above.
10	Transport of goods in a vessel	50	50	Same as above.
11	Services  by a tour operator in relation to,- (i)  a package tour	75	25	(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
				(ii) The bill issued for this purpose indicates that it is inclusive of charges for such a tour.
	(ii)  a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour	90	10	(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
				(ii) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation.
				(iii) This exemption shall not apply in such cases where the invoice, bill or challanissued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation.
	(iii) any services other than specified at (i) and (ii) above.	60	40	(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
				(ii)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.
12	Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority	75	25	(i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004.
				(ii)The value of land is included in the   amount charged from the service receiver.
	a. Residential properties having a carpet area above 2000 sq ft and where amount charged is equal to or more than Rs. 1 crore, b. Commercial properties.	70	30	same two conditions above
				(Notification No. 02/2013-ST dated 1st March, 2013 applicable wef 01.03.13)

Read more details about Service Tax abatement rate here

8.Service Covered under reverse charge

Sl.No.	Description of a service	Percentage of  service tax payable by the person providing service	Percentage of service tax payable by the person receiving the service
1	services  provided or agreed to be provided  by an insurance agent to any person carrying on insurance business	Nil	100%
2	services  provided or agreed to be provided  by a goods transport agency in respect of transportation  of goods by road	Nil	100%
3	services  provided or agreed to be provided  by way of sponsorship	Nil	100%
4	services  provided or agreed to be provided  by an arbitral tribunal	Nil	100%
5	services  provided or agreed to be provided  by individual advocate	Nil	100%
6	services  provided or agreed to be provided  by way of support service by Government or local authority	Nil	100%
7	(a)   in respect of  services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on abated value. (b)   in respect of  services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on non abated value.	Nil 60%	100 % 40%
8.	services  provided or agreed to be provided  by way of supply of manpower or Security services(inserted in notification 45-46 dated 07/08/2012)  for any purpose	25% Read FAQ about Director and Security Services Under reverse charge Mechanism	75 %
9.	services  provided or agreed to be provided  by way of works contract	50%	50%
10	any taxable services  provided or agreed to be provided  by any person who is located in a non-taxable territory and received by any person located in the taxable territory(IMPORT OF SERVICES)	Nil	100%
11	provided or agreed to be provided by a directorof a company to the said company (Inserted through notification 46-47/2012 dated 07/08/2012) Read more: http://www.simpletaxindia.net/2012/08/security-services-director-covered-in.html#ixzz230dkwCQg	Nil Read FAQ about Director and Security Services Under reverse charge Mechanism	100%

Read FAQ about Director and Security Services Under reverse charge Mechanism 

Whether Reverse Charge is applicable on New services inserted from 01.07.2012 if it has been provided or paid before 01.07.2012 read here 

From old list notified vide notification 36/2004 31/12/2004  three service has been deleted 

1. Telecommunication
2. General Insurance auxiliary
3. Mutual Fund distributor services.

Support services By Govt or Local authority :Section 65B(49) of Finance Act, 1994 provides the definition of ‘support services’. Support services in respect of which service tax is payable by business entity receiving such services from government or local authority are as under: 

(i) Infrastructural Support Services; 

(ii) Operational support Services; 

(iii) Administrative Support Services; 

(iv) Logistic Services; 

(v) Marketing Services; 

(vi)  Advertisement Services; 

(vii) Promotion Services; 

(viii) Construction or Works Contract Services; 

(ix) Security; 

(x) Testing and Analysis 

(xi) Any other support of any kind comprising functions that entities carry out in ordinary course of  operations themselves but may obtain as services by outsourcing from others for any reason whatsoever. 

Partial Reverse charge :But few new services has been added in the List and for the first time in service tax act /regime partial reverse charge under service tax has been introduced. Now both service receiver and service provider have to pay tax as per prescribed % in case of four services.

The reverse charge is applicable if service receiver /service provider satisfy few condition .In other case service provider has to pay tax on full amount of service.

9.Persons Covered under reverse charge 

Sl.No.	Description of a service	SERVICE PROVIDER	SERVICE RECEIVER
1	services  provided by an insurance agent to any person carrying on insurance business	ANY	ANY
2	services  provided or agreed to be   provided  by a goods transport agency in respect   of transportation  of goods by road	where the consignor or the consignee  is,— (a)  any factory registered under or governed by the Factories Act, 1948 (63 of 1948); (b)  any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; (c)  any co-operative society established by or under any law; (d)  any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder; (e)  any body corporate established, by or under any law; or (f)  any partnership firm whether registered or not under any law including association of persons;
3	services  provided or agreed to be   provided  by way of sponsorship	any	body corporate/partnerhip firm
4	services  provided or agreed to be   provided  by an arbitral tribunal	Arbitral tribunal	Business entity with a turnover more than rupees ten lakh in the preceding financial year;
5	Legal Services provided by advocate (whether individual or firm) to any business entity	individual or firm	Business entity with a turnover more than rupees ten lakh in the preceding financial year;
6	services  provided or agreed to be   provided  by way of support service by Government or local authority	Government /Local authority	Business entity
7	(a)   services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on abated value.	Individual (prop ) /Partnership firm (registered or unregistered)             /HUF	any company formed or registered under the Companies Act, 1956 (1 of  1956) or a business entity registered as body corporate located in the taxable territory;
	(b) services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on non abated value.
8	services  provided or agreed to be   provided  by way of supply of manpower or security services  for any purpose
9	services  provided or agreed to be   provided  by way of works contract
10	any taxable services  provided or agreed to be provided  by any person who is located in a non-taxable territory and received by any person located in the taxable territory	any	any
11	provided or agreed to be provided by a director of a company to the said company Read more: http://www.simpletaxindia.net/2012/08/security-services-director-covered-in.html#ixzz230dkwCQg (inserted by notification 46/2012 date 07/08/2012)	Director (individual)	Company

Now, w. e. f. 07.08.2012, following additional services shall be covered by reverse charge mechanism(Notification 45/2012 and 46/2012 dated 07/08/2012)

Read FAQ about Director and Security Services Under reverse charge Mechanism 

10. List of Negative services 

66D. Negative list of services.(Applicable wef 1 July 2012 vide Not. No. 19/2012-ST dated 5 June 2012) The negative list shall comprise of the following services, namely:––

(a) services by Government or a local authority excluding the following services to the extent they are not covered elsewhere—

• (i) services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than Government;
• (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;(iii) transport of goods or passengers; or
• (iv) support services, other than services covered under clauses (i) to (iii) above, provided to business entities;

(b) services by the Reserve Bank of India;

(c) services by a foreign diplomatic mission located in India;

(d) services relating to agriculture or agricultural produce by way of —

• (i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or seed (Omitted from the date of Presidential Assent TO FINANCE BILL 2013) testing;
• (ii) supply of farm labour;
• (iii) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
• (iv) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;(v) loading, unloading, packing, storage or warehousing of agricultural produce;
• (vi) agricultural extension services;
• (vii) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce;(e) trading of goods;

(f) any process amounting to manufacture or production of goods;

(g) selling of space or time slots for advertisements other than advertisements broadcast by radio or television;

(h) service by way of access to a road or a bridge on payment of toll charges;

(i) betting, gambling or lottery;

(j) admission to entertainment events or access to amusement facilities;

(k) transmission or distribution of electricity by an electricity transmission or distribution utility;

(l) services by way of—

• (i) pre-school education and education up to higher secondary school or equivalent;
• (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
• (iii) education as a part of an approved vocational education course;

(m) services by way of renting of residential dwelling for use as residence;

(n) services by way of—

• (i) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;
• (ii) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers;

(o) service of transportation of passengers, with or without accompanied belongings, by—

• (i) a stage carriage;
• (ii) railways in a class other than—
• (A) first class; or
• (B) an air conditioned coach; 
• (iii) metro, monorail or tramway;
• (iv) inland waterways;
• (v) public transport, other than predominantly for tourism purpose, in a vessel, between places located in India; and
• (vi) metered cabs, radio taxis or auto rickshaws;

(p) services by way of transportation of goods—

• (i) by road except the services of—
• (A) a goods transportation agency; or
• (B) a courier agency;
• (ii) by an aircraft or a vessel from a place outside India up to the customs station of clearance; or
• (iii) by inland waterways;

(q) funeral, burial, crematorium or mortuary services including transportation of the deceased.


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