The rate at which the service tax is levied upon the services from various sectors is known as the rate of service tax. As per this year’s union budget and some other guidelines by the government, the effective rate of service tax at present is 10.3 % which can be levied on the value of the taxable service. This effective rate of service tax consists of service tax at the rate of 10% which is payable on the gross value of taxable service, the education cess at the rate of 2% on the service tax amount and the Higher and Secondary education cess at 1% on the service tax amount.
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What is the rate of service tax?
