25th MAY 2007
To
All IATO members
Dear colleagues,
Sub: Secondary and Higher Education Cess on Service Tax
As your are aware, in the union budget 2007-2008, the Government has levied 1% additional cess on the service tax payable on the taxable services. Since the finance bill has been enacted w.e.f. 11th May 2007, this 1% additional cess on service tax is applicable from 11 th May 2007. Further, this is a separate cess which is to be charged separately in the bill/ invoice and separate record is required to be maintained. The assessee is required to deposit additional cess under a separate code which has been notified as "00440252" which needs to be enacted separately on the challan.
| Services |
Service Tax |
Cess @ 3%
(2 % + 1 %) |
Total |
| Tour Package |
4.80 % |
0.096% + 0.048% |
4.944 % |
| Hotel Accommodation only |
1.20 % |
0.024% + 0.012% |
1.236 % |
| Hotel accommodation with meals |
4.80 % |
0.096% + 0.048% |
4.944 % |
| Air Ticketing – Domestic |
0.60 % |
0.012 % + 0.006% |
0.618 % |
| Air Ticketing – International |
1.20 % |
0.024% + 0.012% |
1.236 % |
| Railway Ticketing (on service charges) |
12.00% |
0.24% + 0.12% |
12.36 % |
Transport (for cars)
Coaches also added w.e.f. 1st June 07 |
4.80 % |
0.096% + 0.048% |
4.944 % |
| Other miscellaneous services |
12.0% |
0.24% + 0.12% |
12.36% |
Also by the finance act 2007, the Government has expanded the scope of a number of existing services. Service tax on such expansion of services shall also be applicable from 1 st June 2007 vide Notification No. 23/2007. Earlier service tax was applicable only on cars and now with effect from 1st June, service tax on coaches will also be applicable.
For further details, please contact your own chartered accountant.
Thanking you,
Sincerely,
Pronab Sarkar
Hony. Treasurer |
