Service tax rate raised from 10 to 12 percent

New Delhi, Mar 16 (ANI): The service tax rate has been marginally raised from 10 per cent to 12 percent.

Presenting the Union Budget 2012-13 in Lok Sabha today, Union Finance Minister Pranab Mukherjee said that to maintain a healthy fiscal situation, the Government has raised the service tax with consequential changes in rates from services that have individual tax rates.

Mukherjee said that this is expected to yield an additional revenue of Rs. 18,600 crore.

"The share of services in GDP has increased to 59 per cent," he added.

Meanwhile, as a measure of harmonization between central excise and service tax, Mukherjee also announced a number of alignments.

These include a common simplified registration form and a common return for Central Excise and Service Tax, to be named EST-1. This common return will comprise only one page, which will be a significant reduction from the 15 pages of the two returns at present. (ANI)