01 April 2015 Circular No. 3/ Service Tax No.1/2015

01 April 2015
Circular No. 3/ Service Tax No.1/2015-16
To : Members of the Committee
All Members
Re: Increased rate of Service Tax - applicability
Dear Sir,
We are furnishing below the updates on Service Tax :
1. Applicability of Increased Rate of Service Tax –The revised rate of 14% of service tax shall be
applicable from a date to be notified. At present, the rate for service tax continues to be 12.36%
(including cess).
2. Swacchh Bharat Cess proposed to be levied at 2% on the value of services on all or select services will
also be effective from the date to be notified. It may be noted that Swacchh Bharat Cess will not be
Cenvatable i.e. input credit paid on Swacchh Bharat Cess shall not be adjustable against the output.
3. ST 3 Return – Half Yearly Service Tax Return (ST-3) for the period October – March 2015 is due on
April 25th, 2015. The Excel Utility can be downloaded from www.aces.gov.in/ downloads.
4. Rate of Interest – Interest rates have been revised w.e.f. 1-10-14 to 18% for delay till 6 months, 24%
for delay from 6 months to 12 months and 30% for delay beyond 1 year.
5. CENVAT can now be availed only for the last 1 year, w.e.f. March 1, 2015 in the normal case, other
than cases of re-credit. Members are requested to avail and utilise CENVAT accordingly.
Thanking you,
Yours faithfully,
(M.C.Das)
Deputy Director General