Compiled by:- Shree Ram Raut - Mobile: (c) Shree Ram Raut1

Introduction The Hon’ble President has given assent to the Finance Bill, 2015 and the Ministry of Finance, Department of Revenue vide Notification No. 14/2015- ST dated May 19, 2015 has notified increase in the rate of Service tax from 12.36% to flat 14% (Subsuming Education Cess and Secondary & Higher Secondary Education Cess) i.e. NO NEED TO CHARGE EDUCATION and SECONDARY & HIGHER EDUCATION CESS separately, to be effective from June 1, Accordingly, the rate of the following Services also stand increased proportionately, under rule 6 (7), 6(7A), 6(7B) and 6(7C) of the Service Tax Rules, ) Money changing service under Rule 2) Service provided by air travel agent 3) Insurance service, and 4) Service provided by lottery distributor and selling agent the service provider (c) Shree Ram Raut2

Rate of Service Taxes Service Old Rate New Rate Service Tax (General) Including EC & SHEC 12.36%14.00% Air Travel Agent Air Travel Agent Domestic booking0.6 %0.7% International Booking1.2%1.4% Life Insurance Premium Life Insurance Premium First Year Premium3.00%3.50% Subsequent Year Premium1.50%1.75% Money Changing Service Money Changing Service Amount of currency exchanged up to INR 0.1 million0.12% subject to minimum of INR % subject to minimum of INR 35 Amount of currency exchanged exceeding INR 0.1 million and up to INR1 millionINR 120 and 0.06%INR 140 and 0.07% Amount of currency exchanged exceeding INR1 millionINR 660 and 0.012% subject to maximum of INR 6,000 INR 770 and 0.014% subject to maximum of INR 7,000 Lottery Where guaranteed prize pay out is more than 80 per centINR 7,000INR 8,200 Where guaranteed prize pay out is less(equal to) than 80 per centINR 11,000INR 12,800 (c) Shree Ram Raut3

Deciding Rate of Tax In case a taxable service has been provided Invoice has been issued Payment received for the invoice Point of taxation shall beApplicable Rate BEFORE the change in effective rate of tax i.e. 1 st June 2015 AFTER 1 st June 2015 Date of issuance of invoice or Date of receipt of payment, whichever is earlier New Rate BEFORE 1 st June 2015AFTER 1 st June 2015Date of issuance of invoice Old Rate Old Rate AFTER 1 st June 2015BEFORE 1 st June 2015Date of receipt of payment Old Rate AFTER the change in effective rate of tax i.e. 1 st June 2015 BEFORE 1 st June 2015AFTER 1 st June 2015Date of receipt of payment New Rate New Rate BEFORE 1 st June 2015 Date of issuance of invoice or Date of receipt of payment, whichever is earlier. Old Rate Old Rate AFTER 1 st June 2015BEFORE 1 st June 2015Date of issuance of invoice New Rate New Rate (c) Shree Ram Raut4

Thumb Rule for deciding Rate of Tax Final Step:- Now, TWOTHREE If TWO events of the THREE Before OLD RATE AFTER NEW RATE Step1. Determine the Date of the following three Events, namely:- 1) Date of Provisioning of Service 2) Date of Issue of Invoice 3) Date of Payment (c) Shree Ram Raut 5 It is to be noted that the Swachh Bharat Cess is not yet notified to be applicable.