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Indian Service Tax rise

  • Feb 29, 2016 | Richard Asquith

Indian Service Tax rise

The latest Indian Budget, issued on 29 February, contained a number of amendments to the VAT regime.

This included an new tax, Krishi Kalyan Cess, at 0.5% on all taxable services to contribute towards agriculture projects. This will increase Indian Service Tax to 15% from 1 June 2016.  It was last raised to 14.5% (including Swachh Bharat Cess) in November 2015.

The government is still confident that it can pass the Goods & Services Tax implementation legislation this year, however, opposition remains strong.  GST would replace Service Tax, CENVAT, VAT and a host of other indirect taxes.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.