Service tax is a Government levy on the service provider, which has to be charged and deposited with the Government as per the Service Tax rules and regulations.
With the induction of Business Auxiliary and Business Support Service under the gamut of Service Tax, the Liner Agency is liable to charge Service Tax on all business related activities, as defined under Section 65. The current rate of service tax is @ 10% on the value of service plus Education Cess @ 3% on service value and service tax thereon.
This rate can be subject to change basis change in directives issued by the Government.
For further details, please refer to www.servicetax.gov.in