8..3. SERVICE TAX RATE
(Increase in Effective Service Tax Rate w.e.f. 11th May 2007.)
Service Tax Rate has been hiked to 12.36 per cent as Secondary and Higher Education Cess of 1 per cent on service tax has come into force. Consequently, w.e.f. 11th May 2007 the rate of service tax shall be revised as follows:
Service Tax on taxable value 12.00%
Education Cess @ 2% of Service Tax 0.24%
Secondary and Higher Secondary Cess (SHE) 1% of taxable value 0.12%
Hence effective service tax works out to 12.36%
Kindly note that all three heads of taxes shall have to be separately displayed on the Invoice.