SERVICE TAX - BUDGET HIGHLIGHTS

[Brijesh Verma]

1. No change in Service Tax Rate
2. No Change in threshold limits
3. Import of services have been rationalized
4. Cenvat Credit Rules have been suitable amended to harmonize Input and Output Services
5. Penal provisions have been rationalized
6. Point of taxation Rules have been introduced
7. Certain New Service have been introduced
   1. Hotel having daily tariff > Rs. 1000 (with abatement of 50%)
   2. AC Restaurants serving Liquor (with abatement of 70%)
   3. All services of hospitals having > 25 Beds (with abatement of 50%)
   4. Diagnostic Services (with abatement of 50%)
8. Legal Service has been amended to:
   1. provided by Individuals to Business Entity
   2. Individual to BE (in relation to representation and Arbitration)
9. Rule 6 of Cenvat Credit Credit Rules is being Streamlined
10. Individuals/Sole Prop having < or = 60 Lakhs – no need for Audit by Department
11. Individuals/Sole Prop having < or = 60 Lakhs – Interest on delayed payment @10%

Budget documents are yet to be seen....so any mistake in figures may please be condoned....