We know that normal rate of service tax is 15%

However for certain assessees, there is an option to pay service tax at a special rate

This scheme is optional

If this option is exercised, the scheme is valid for whole year and cannot be withdrawn


Different special rates are applicable for

  • Air Travel Agent service
  • Life Insurance Company
  • Money changer Service
  • Lottery Ticket Agent Service

Rates for these were introduced on 1.6.2015

These have again been proportionately increased with the introduction of Swachh Bharat Cess and Krishi Kalyan Cess (Notification 31/2016)

Lets study these one by one

  1. Service Tax
  2. Valuation of Taxable Service

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.