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Business News/ Politics / Policy/  Finmin: don’t pay 14% service tax yet
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Finmin: don’t pay 14% service tax yet

Ministry says the new service tax rate shall come into effect from a date to be notified by the central government after the enactment of the Finance Bill

Finance minister Arun Jaitley in his budget for fiscal year 2016 had proposed increasing service tax from 12% to 14%. Photo: MintPremium
Finance minister Arun Jaitley in his budget for fiscal year 2016 had proposed increasing service tax from 12% to 14%. Photo: Mint

New Delhi: The finance ministry on Saturday asked people not to pay higher service tax of 14% proposed in the budget, as the Finance Bill has not yet been passed by Parliament.

Revenue secretary Shaktikanta Das said customers should lodge a complaint with the local chief commissioner if any establishment asks for a 14% service tax. “If anyone is charging 14% service tax before Finance Bill is passed, please report to local chief commissioner," Das tweeted.

Finance minister Arun Jaitley in his budget for fiscal year 2016 had proposed increasing service tax from 12% to 14%. The new levy, however, will apply from the date of notification to be issued by the revenue department after the passage of the Finance Bill by Parliament.

“The new service tax rate shall come into effect from a date to be notified by the central government after the enactment of the Finance Bill, 2015," said a finance ministry memorandum.

The clarification by the revenue secretary comes in the wake of complaints that some establishments, especially restaurants, have started charging higher service tax.

The Finance Bill will be taken up for consideration and passage in the second leg of the budget session that is beginning from Monday.

Das also tweeted that the Goods and Services Tax (GST) will be taken up on priority by Parliament in the remaining part of the budget session. “Focus is on GST constitutional amendment. Government’s priority in Parliament session starting on 20th April," he said in another tweet.

Jaitley too had earlier said that the government would accord priority to the Constitutional Amendment Bill on the GST. PTI

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Published: 18 Apr 2015, 09:09 PM IST
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