Service Tax of 12.36% from 01-Apr-2012

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:

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.

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About the Author: Vishnu


  1. Hi,

    Looks like, an owner will pay two slaps of service taxes. one, when he is paying monthly maintenance to association, second, when association is out sourcing the services to vendors.

    Please clear this doubts.



  2. In Kerala,flats are owned by individuals and not by the Association.Individual owners rent out flats and deal with them directly.The Association collects monthly charges from Occupants, who may be Owners or Tenants.The money is used for paying for common facilities,water and maintenance by hired workers.
    Will service tax be applicable for any of these?

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