Rates Of Service Tax For Different Classes Of Assesses

The service tax rate paid by the different classes varies from service to service.

Service tax on house rent – Service tax of 12.36% is applicable on rent that is received by an owner or proprietor of the house.

Service tax on hiring and leasing of equipment - As per section 137 of the finance act 2001 service tax includes on equipment leasing and hire-purchase.

Service tax on banking and financial services- Under the finance tax act of 2001 service tax is also applicable on banking and financial services.

In the present budget of 2010 the service tax of 12% is implemented on various products unlike the previous service tax of 10.3%. Air line fares are still not subjected to the current service tax of 12 percent. A service tax of 10.3 percent is still the same on airline fare like previous year.

The standard service tax rate for the current financial year (2010-2011) on various services is of 12 percent. The service tax structure is not applicable on agriculture. Any income generated from agriculture, irrigation and harvesting is not subjected to the service tax. As per new law under which any service related to photography such as developing, printing, chemical related to printing and other components related to photography is exempted from the service tax.

• Actuary or intermediary or insurance intermediary or insurance agent.
• Advertising agency.
• Air travel agent (On domestic and international booking a flat rate of 10.3%service tax is applicable).
• Authorized automobile service stations services to be extended to multi utility vehicles viz. Maxi Cabs.
• Authorized automobile service station.
• Banking company or financial institution or a non-banking financial institution.
• Beauty parlor.
• Broadcasting agency.
• Business auxiliary service [business promotion and support services including customer care services (excluding any information technology service)].
• Cable operator.
• Cargo handling agency.
• Hotels and resorts.
• Clearing and forwarding agent.
• Commercial concern offering convention service.
• Commercial concern providing online information and data base access and/or retrieval services.
• Commercial training and coaching centers - private tutorials.
• Commissioning and installation services.
• Consulting engineer.
• Courier agency.
• Credit rating agency.
• Custom house agent.
• Dry cleaner.
• Event manager.
• Fashion designer.
• Foreign exchange broking by any person now included i.e. Individuals, partnership firms (hitherto it was limited to banking company, financial institutions, non-banking finance companies (NBFC) covered (w.e.f. 16/07/2001) & body corporate (w.e.f- 16/08/2002).
• Franchise services.
• Health club and fitness center.
• Insurer carrying on general insurance business services.
• Insurer carrying on life insurance business.
• Interior decorator.
• Internet Cafe - (Cyber Cafe).
• Maintenance and repair services excluding motor vehicles.
• Management consultant.
• Mandap keeper.
• Manpower recruitment agency.
• Market research agency.
• Photography studio.
• Port or person authorized by the port for conducting port services.
• Port services to be extended to all minor ports also (hitherto, it was limited to major ports).
• Practicing chartered accountant.
• Practicing company secretary.
• Practicing cost accountant.
• Rail travel agent.
• Real estate agent.
• Rent-a-cab operator.
• Scientist or technocrat or science or technology institution.
• Security agency.
• Sound recording studio.
• Steamer agent.
• Stock broker.
• Storage or warehouse keeper.
• Technical inspection and certification services excluding inspection and certification of pollution levels.
• Technical testing and analysis, excluding health and diagnostic testing in relation to human beings and animals.
• Telegraph authority providing facsimile services.
• Telegraph authority providing lease circuit services.
• Telegraph authority providing pager services.
• Telegraph authority providing telegraph services.
• Telegraph authority providing telephone services.
• Telegraph authority providing telex services.
• Tour operator.
• Underwriter.
• Video production agency.

In this financial year there are eight more services came into force that comes under service tax bracket from the current financial year 2010

1. Organizing, promoting and marketing games of chance(i.e. lottery).
2. Health services undertaken by hospitals for their employees.
3. Health services provided under health insurance.
4. Operations work related to maintenance of medical record.
5. Services provided by electricity exchanges.
6. Special services by builders or real estate agents such as providing preferential location.
7. Promotion of brands and events.
8. Events and business entity.