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Service tax rate increased to 14.5% after Swachh Bharat Cess levied

Rate of service tax is increased from 14 percent to 14.5% due to Swachh Bharat Cess levied on services. Swachh Bahrat Cess is applicable from 15 November 2015. Now you need to pay service tax at 14.5% instead of 14%. Department of revenue issued a notification no. 22/2015 dated 6 November 2015 regarding increase in the rate of service tax. 

Notification No. 22/2015-Service Tax
G.S.R. ---(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) read with sub-section (5) of section 119 of the Finance Act, 2015 (20 of 2015), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all taxable services from payment of such amount of the Swachh Bharat Cess leviable under sub-section (2) of section 119 of the said Act, which is in excess of Swachh Bharat Cess calculated at the rate of 0.5 percent. of the value of taxable services:

Provided that Swachh Bharat Cess shall not be leviable on services which are exempt from service tax by a notification issued under sub-section (1) of section 93 of the Finance Act, 1994 or otherwise not leviable to service tax under section 66B of the Finance Act, 1994. 

This notification shall come into force from the 15th day of November, 2015.

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  1. Is it part of service tax? Can we take input credit? How to show in return?

  2. This govt really sucks every thing is gone up u r looking for tax saving But for comman people its a daily burden. Inka buss chaley tho oxygen inhale karney per bhi tax lagha dey