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Corporate Tax Alert

Indirect Tax Provisions

Service Tax - Change in tax rate

This has reference to the Corporate Tax Alert sent earlier (Copy attached).

With effect from 1st July,2012 , the abatement rates have changed and is given below :

Particulars of Service Till 30th June, 2012 1st July onwards
Abatement Rate Effective Rate Abatement Rate Effective Rate
Accommodation i.e. Room 50% 6.18% 40% 7.42%
F&B (only for Air Conditioned Restaurant with Bar) 70% 3.71% 60% 4.94%

The change will be effected in the system in the TMS from 1st July onwards.