The Finance Ministry has notified that the last day of filing income tax returns has…
New Delhi(PTI): The Swachh Bharat 2% cess on various services will be notified at a later date although the higher rate of 14% Service Tax will take effect from June 1, the Finance Ministry said today.
PM Modi cleaning up streets as part of Swachh Bharat campaign File Photo
“…the date of giving effect to the provisions relating to imposition of a Swachh Bharat cess on all or any taxable service will be done in due course,” said an official release.
Resources generated from this cess will be utilised for financing and promoting initiatives towards Swachh Bharat.
Finance Minister Arun Jaitley in his budget announced raising the service tax rate from 12 per cent to 14 per cent and levying of 2% Swachh Bharat cess on all or select services to fund cleanliness drive.
“The Finance Bill, 2015 has since been enacted and the Central Government has notified June 1, 2015 as the date from which the rate of 14% would become applicable,” said the release.
It further said that the provision of education cess and secondary and higher education cess would be subsumed in the service tax with effect from June 1.
Currently, the service tax incidence works out to be 12.36% after taking into account various cesses.
Besides, the increase in the tax rate certain other procedural changes would come into play from next month.
Service tax is levied on all services, expect a small negative list.
Advertising, air travel, services of architect, certain type of constructions, credit card, even management, money changing activities, insurance, and tour operator are some of the important services which attract tax.