To meet higher expenditure requirement for the next financial year, mainly on account of the seventh pay commission’s recommendations and the implementation of the one-rank-one-pay (OROP) pension plan, the Centre could raise the service tax rate by up to two percentage points in the coming Union Budget.A committee headed by Chief Economic Advisor Arvind Subramanian has recommended a standard rate of 16.9 per cent to 18.9 per cent under the proposed goods and services tax (GST) regime. 

Source : http://www.business-standard.com/article/economy-policy/govt-may-raise-service-tax-rate-in-budget-115122100039_1.html

Advertisements