Finance Bill gets Presidential assent

[Surender Gupta]

Finance Bill gets Presidential assent on 18th evening but Bill gets gazetted on 19-4-2006, therefore new rate of 12.24% (i.e. 12% + 0.24%) ofservice tax is effective from 19-4-2006.

The other provisions which are coming into effect from 19-4-2006 are: -

- Service tax on Services which are received in India or Imported into India

- New set of provisions of Valuation (However, Rules are to be notified)

- Amendments in the provisions related to Adjudication of Show Cause Notice and Recovery of Amount received in excess of service tax.

- Provisions related to provisional attachment of property.

- Change in the provision for penalty for failure to pay service tax in time.

The following provisions shall be effective only from the date of notification (not now) -

- Change in the scope of existing services

- Introduction of New Services

- Deletion of Explanation to the section 65(105)  - import of services.