Service Tax Calculator for India
Here we present a free and easy to use service tax calculator tool. With the introduction of new Krishi Kalyan Cess @ 0.5% effective from 1st June 2016, the effective rate of Tax is increased to 15%. On this page, just enter the amount of service and get the Service Tax @ 14% + Swachh Bharat Cess @ 0.5% + Krishi Kalyan Cess @ 0.5% and the total of all these.
What is Service Tax?
Service tax can be explained as the tax collected by the Government of India from certain service providers and for certain services. Every person, providing any of the specified taxable service is required to pay Service Tax. Service tax is a kind of indirect tax because the service providers pay the tax and recovers it from the service receivers who receive or purchase the taxable services. It can also be mentioned as the tax that you pay to the government for different services received from various service providers.
What is Swachh Bharat Cess?
The Swachh Bharat cess will be an additional levy, making an increase of 0.5% in the effective service tax rate, which provides a boost to the clean India initiative. The proceeds from this cess will be exclusively used for Swachh Bharat initiatives of the government.
What is Krishi Kalyan Cess?
The Krishi Kalyan Cess is the amount collected for purposes like financing agricultural activities and for the general welfare of the farmers. Krishi Kalyan Cess amount would be directed to the Consolidated Fund of India from the Service Tax which is collected @ 15%. Funds collected under the Krishi Kalyan Cess will not be utilised for any other purposes.