New Service Tax in Tally.ERP 9

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New Service Tax in Tally.ERP 9

Implementation of New Service Tax in Tally.ERP 9 ,Rate of 14% to Come Into Effect From June 1 -2015

 
The new service tax rate of 14 per cent will come into effect from June 1- 2015, the Tally.ERP 9 notified on May, in a move that will make eating out in restaurants, insurance and phone usage expensive, among many other things.
 
The service tax is currently levied at the rate of 12.36 per cent including education cess.
 
The new rate of 14 per cent was announced by Finance Minister Arun Jaitley in his Budget for financial year 2015-16.
 
It is proposed to increase the current rate of service tax plus education cess from 12.36 per cent to a consolidated rate of 14 per cent.
 
Service tax is levied on all services except a small negative list. Advertising, air travel, services of architects, certain type of constructions, credit cards and event management are some of the services which attract this tax.
 
Service Tax is a destination based consumption tax in the form of Value Added Tax. Service Tax is an indirect tax imposed on specified services (taxable services) provided by a service provider (Company, Individual, Firm etc.).
 
Service Tax was first brought into force with effect from 1 July 1994. All service providers in India, except those in the state of Jammu and Kashmir, are required to pay a Service Tax in India.
 
Initially only three services were brought under the net of Service Tax and the tax rate was 5%. 
 
Gradually more services came under the ambit of Service Tax. In accordance with the Annual Budget 2012-13, the current Service tax rate has been increased from 10% to 12%. & now New Service Tax in Tally.ERP 9 ,Rate of 14% to Come Into Effect From June 1 -2015