Basic Information about Service Tax & Service Tax Rate Updates:
Service tax is a tax which is payable on services provided by service provider. It is like Excise duty. Excise duty is payable on the goods which are manufactured. As same as service tax is payable on services. Service tax is taken by government. The service provider collects tax from the customer and deposit to the government.
Revised Current Service Tax Rate
In budget 2015, the financial minister declared that the service tax has been increased from 12.36% to 14%. And this new rate of service tax is applicable from 1st June, 2015. Before 1st june, the tax of provided service was 12.36% and after 1st June, 2015 it is 14%.
The service tax is applicable from 1994. When we use the services like phone bill payment or hire a room in hotel, we have to payout little more than actual charge due to this service tax factor.
Service Tax Collection History
The collections under the Service tax from the year of original levying year of 1994 are constantly growing. The collections are shown as in the following table:
| Financial Year | Revenue Rupees(in crores) | Number of services | Number of Assessees |
|---|---|---|---|
| 1994-1995 | 407 | 3 | 3943 |
| 1995-1996 | 862 | 6 | 4866 |
| 1996-1997 | 1059 | 6 | 13982 |
| 1997-1998 | 1586 | 18 | 45991 |
| 1998-1999 | 1957 | 26 | 107479 |
| 1999-2000 | 2128 | 26 | 115495 |
| 2000-2001 | 2613 | 26 | 122326 |
| 2001-2002 | 3302 | 41 | 187577 |
| 2002-2003 | 4122 | 52 | 232048 |
| 2003-2004 | 7891 | 62 | 403856 |
| 2004-2005 | 14200 | 75 | 774988 |
| 2005-2006 | 23055 | 84 | 846155 |
| 2006-2007 | 37598 | 99 | 940641 |
| 2007-2008 | 51301 | 100 | 1073075 |
| 2008-2009 | 60941 | 106 | 1204570 |
| 2009-2010 | 58422 | 109 | 1307286 |
| 2010-2011 | 71016 | 117 | 1372274 |
| 2011-2012 | 97509 | 119 | 1535570 |
| 2012-2013 | 132518 | Negative List Regime | 1712617 |
If you like our article than kindly share it with your friends via whatsapp, facebook, twitter, google+ etc.