Dear ADDA Treasurers,
Some of you have written to us about when to start charging the Service Tax of 12.36%.
The answer is: from 01-April-2012.
While the Parliamentary approval on the Budget Proposal is pending, the budget document states the date from which various changes are applicable.
The budget document is available here:
Page 45 has the required clarity. Please see excerpt below:
I. RATE OF SERVICE TAX:
1) The 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:
[The above changes will be applicable from 01.04.2012]
Thanks to CA Navaneeth N. Kini & Co. for providing the clarity.