The currently levied education cess and secondary and higher education cess would become ineffective from June 1 as they would be subsumed in the service tax rate of 14 percent notified by the Central Board of Direct Taxes, the finance ministry said on Wednesday.
"The provisions levying education cess and secondary and higher education cess would also cease to have effect from June 1, 2015, as the same would be subsumed in the service tax rate of 14 percent," a statement here said.
"However, the date of giving effect to the provisions relating to imposition of a Swachh Bharat cess on all or any taxable service will be done in due course," the release added.
The basic rate currently is 12 percent and the education cess is at 3 percent of the basic tax, for a total of 12.36 percent.
Following Finance Minister Arun Jaitley budget announcement in February, the government has notified June 1, 2015 as the date from which the rate of service tax would go up from 12 percent to 14 percent.