.: T A X C O N :.

Service Tax :

Rate of Service Tax- past and present
The rate of service tax have been changed from time to time by suitable amendment made to the finance act, 1994, by the finance act 2003, the finance act 2004, the finance act 2006 and the finance act 2007, however exemption have been provided W.e.f 24/2/2009 to all taxable service vide notification No.8/2009 -ST dated 24/2/2009.

*Period*	*Rate of Service Tax*	*Rate of Education Cess*	*Rate of Secondary & Higher Educational Cess*	*Effective Rate of Service Tax*
1/7/1994 to13/5/2003	5%	No such levy	No such levy	5%
14/5/2003 to 9/9/2004	8%	No such levy	No such levy	8%
10/9/2004 to 17/4/2006	10%	2%	No such levy	10.20%
18/4/2006 to 10/5/2007	12%	2%	No such levy	12.24%
11/5/2007 to 23/2/2009	12%	2%	1%	12.36%
W.E.F 24/2/2009	10%	2%	1%	10.30%

Major Heads For Payment Of Service Tax

Sl.No	Name of the Service	Date of Imposition
1	Stock Broker	1/7/1994
2	Telephone	1/7/1994
3	General Insurance	1/7/1994
4	Pager	1/11/1996
5	Advertising Agency	1/11/1996
6	Courier	1/11/1996
7	Custom House Agent	15/6/97
8	Steamer Agent	15/6/97
9	Air Travel Agent	1/7/1997
10	Man dap Keeper	1/7/1997
11	Consulting Engineer	7/7/1997
12	Manpower Recruitment	7/7/1997
13	C&F Agent	16/7/97
14	Rent a Cab Operator	16/7/97
15	Goods transport operator	16/10/97
16	Tour operator	1/9/1997
17	Architect	16/10/98
18	Interior decorator	16/10/98
19	Management Consultant	16/10/98
20	Chartered Accountant	16/10/98
21	Cost Accountant	16/10/98
22	Company Secretary	16/10/98
23	Real Estate Agent	16/10/98
24	Security Agency	16/10/98
25	Credit Rating Agency	16/10/98
26	Market research Agency	16/10/98
27	Under writing	16/10/98
28	Scientific and Technical Consultancy	16/7/01
29	Photography	16/7/01
30	Convention	16/7/01
31	Leased Circuit	16/7/01
32	Telegraph	16/7/01
33	Telex	16/7/01
34	Facsimile	16/7/01
35	Online Information & database	16/7/01
36	Video Tape Production	16/7/01
37	Sound Recording	16/7/01
38	Broad casting	16/7/01
39	Insurance Auxiliary Service	16/7/01
40	Banking and other Financial Service	16/7/01
41	Port service	16/7/01
42	Authorized service station	16/7/01
43	Beauty Treatment	16/8/02
44	Cargo Handling	16/8/02
45	Cable operator	16/8/02
46	Dry Cleaning	16/8/02
47	Event Management	16/8/02
48	Fashion Designing	16/8/02
49	Health and fitness	16/8/02
50	Life Insurance	16/8/02
51	Rail Travel Agent	16/8/02
52	Storage and warehouse	16/8/02
53	Business Auxiliary Services	1/7/2003
54	Commercial Training or coaching	1/7/2003
55	Erection, commissioning or installation	1/7/2003
56	Franchise Service	1/7/2003
57	Internet Café	1/7/2003
58	Management, Maintenance or repair	1/7/2003
59	Technical Inspection & certification	1/7/2003
60	Airport Service	10/9/2004
61	Transport of goods by air	10/9/2004
62	Business Exhibition	10/9/2004
63	Commercial or industrial construction	10/9/2004
64	Intellectual Property Right	10/9/2004
65	Opinion Poll	10/9/2004
66	Outdoor Catering	10/9/2004
67	TV or radio program me production	10/9/2004
68	Pandal & shamiana	10/9/2004
69	Survey and exploration of minerals	10/9/2004
70	Travel Agent	10/9/2004
71	Forward Contract	10/9/2004
72	Transport of goods by road	1/1/2005
73	Transport of goods through pipeline	16/6/05
74	Site Preparation and clearance	16/6/05
75	Dredging	16/6/05
76	Survey and map making	16/6/05
77	Cleaning service	16/6/05
78	Membership of club or association	16/6/05
79	Packaging	16/6/05
80	Mailing list compilation & mailing	16/6/05
81	Construction of residential complex	16/6/05
82	Registrar to an issue	1/5/2006
83	Share transfer agent	1/5/2006
84	ATM Service	1/5/2006
85	Recovery Agent	1/5/2006
86	Sale of space or time for advertisement	1/5/2006
87	Sponsorship Service	1/5/2006
88	Air transport of international passenger	1/5/2006
89	Transport of goods in container by rail	1/5/2006
90	Business support service	1/5/2006
91	Auctioneer’s Service	1/5/2006
92	Public relation Service	1/5/2006
93	Ship Management	1/5/2006
94	Internet Telephony	1/5/2006
95	Transport by cruise ship	1/5/2006
96	Payment by card related service	1/5/2006
97	Telecommunication service	1/6/2007
98	Mining of mineral, oil or gas	1/6/2007
99	Renting of immovable property service	1/6/2007
100	Works contract service	1/6/2007
101	Development and supply of content service	1/6/2007
102	Asset management service	1/6/2007
103	Design Service	1/6/2007

Accounting code for Education cess -- Clarification:-
There is a confusion among the PAQs and commissionerates under CBEC, whether education cess in r/o service tax will be collected under S.I code ‘00440297’, or ‘0044298’.In this connection, it is clarified that S.I code 00440297 was allotted earlier when the sub heads below the minor head 0504 –education cess were not opened. But after the opening of sub heads below minor head 0540-Education cess in r/o service tax ,the CGA’s office has allotted new S.I codes i.e. for tax collection “00440298” for other receipt” 00440299” and for deduct refund “00440300”.Therefore the education cess in r/o service tax will be collected under S.I code 00440298.

Secondary and Higher education cess-provisional arrangement till allocation of code?
A new levy of secondary and higher education cess of 1% has been imposed in the budget 2007.The new head of accounts to book the same is yet to be opened. Pending finalization of new head of account, it has been decided that whenever collection is made manually ,the amount may be shown separately in the challan reflecting education cess and secondary & higher education cess. Against the amount shown as secondary & higher education cess it may be mentioned that the account code is yet to be allotted.
This issue with the approval of principal chief controller of accounts.
Secondary and higher education cess---Accounting code:- The trade is informed that the secondary and Higher education cess @1% may be remitted using the following head of accounts.

M.H.0037 CUSTOMS	00370034 Receipt Awaiting Transfer to other minor heads etc.
M.H.0038 Union Excise Duties	00380086 Other Receipts Receipts Awaiting Transfer to other minor heads etc.
M.H.0044Service Tax	00440252 Receipts Awaiting Transfer to other Minor heads

Revised accounting code for secondary and higher educational cess& educational cess w.e.f 4/1/2007:-
The controller general of accounts has approved operation of new minor head “505—secondary and higher educational cess”under the major head “0044-service tax “.The numeric code ,serial code and SCCD codes are as below:-

Numeric Code

Description

Serial code

SCCD Code

0044
004400505

00440050501
00440050502
00440050503

Service Tax
Secondary and Higher education cess
Tax collection

Other receipt
Deduct refund