Circular No. ES/36/2015-16 November 9, 2015
To: Members of the Council
Sub: Government levies 0.5% cess on service tax
Dear Sir,
As you are aware the Government had of late increased the service tax from 12.36% to 14% in the Union Budget 2015-16. This rate of service tax came into effect from 1st June, 2015.
Moreover, the Government has now decided to impose a further increase of 0.5% service tax as Swachh Bharat Cess. The Swachh Bharat Cess will not only increase the effective service tax rate to 14.5% but also cause members of trade to change their systems again to comply with this levy. Thus the Service tax rate goes up from 14% to 14.5% w.e.f 15th November, 2015 vide Service Tax Notification No. 22/2015 ST dated 6th November, 2015.
Members are requested to make a note of the above and do the needful.
Thanking you,
V.ANIL KUMAR
EXECUTIVE DIRECTOR
