Changes Made in Service Tax - Rate of Tax / Exemptions through Notifications

Sr. No.

Changes

Effective Date

1

Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007

Composition rate increased from 2% to 4%

1-3-2008

2

Exemption of Small Service Provider

Exemption limit has been increased from 8 lakh to 10 lakh

1-4-2008

3

Consequential changes have been made in registration of special category of persons and exemption from registration

4

75% exemption in case of GTA services

Entry no. 6 in the notification no. 1/2006 has been deleted. Consequently a new notification no. 13/2008 dated 1-3-2008 has been issued.

1-3-2008

5

Exemption to Hotels

Notification no. 14/2008 issued to exempt:

The taxable service provided by a person, having his place of business, fixed establishment, permanent address or usual place of residence, in a country other than India, and which is received by a hotel located in India, in relation to booking of an accommodation in the said hotel, for a customer, who has his place of business, fixed establishment, permanent address or usual place of residence, in a country other than India, from the whole of the service tax

Explanation.- The expression "hotel" means a place that provides boarding and lodging facilities to public on commercial basis

1-3-2008