GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Budget 2015-16- All About Service Tax Proposals

Service Tax - By: - Nikhil Mohan Jhanwar - Dated:- 1-3-2015 Last Replied Date:- 30-12-1899 - Ist Full Year Budget of New Government has been introduced in Parliament on 28th February, 2015. This Article intends to outline key amendments made in Service Tax. A. Changes effective from enactment of Finance Bill I. Rate of service tax Present rate: 12.36% (12% + 3% as Education Cess) Revised rate: Consolidated 14% (subsuming Education and Secondary Education Cess) Impact: Cost of all services to get .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ents etc. in service tax net Present: Clause admission to entertainment event or access to amusement facility is at present exempted under Negative List. Proposed: The same is being omitted and exemption is being provided under Mega Exemption Notification 25/2012 on certain specific events viz. Theatrical/cinematographic events, recognised sports event and award functions/concerts/musical performance (in case consideration upto ₹ 500 per head). Impact: Service Tax shall be levied on the se .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ture of alcoholic liquor for human consumption. Consequently, Notification 25/2012 is being amended to exclude intermediate production of alcoholic liquor for human consumption from its ambit. Impact: Service Tax shall be levied on contract manufacturing/job work for production of potable liquor for a consideration. 3. Not only Support Services, but all services by Government taxable Present: Presently, services provided by Government or a local authority, excluding certain services specified u .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

en this amendment comes into effect, All services provided by the Government or local authority to a business entity, except the services that are specifically exempted, or covered by any another entry in the Negative List, shall be liable to service tax. 4. Activities in respect of Chit funds and lotteries taxable On account of contrary views by Courts, Government has clarified by way of explanation in Definition of Service and Negative List to levy Service Tax on the services provided by: (a) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

- all reimbursable expenditure or cost incurred and charged by the service provider. amount retained by the distributor or selling agent of lottery from gross sale amount of lottery ticket, or, as the case may be, the discount received, that is the difference in the face value of lottery ticket and the price at which the distributor or selling agent gets such tickets. Impact:- This will nullify landmark judgment of Delhi High Court in case of Intercontinental Consultants and Technocrats Pvt. L .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that provides for reduced penalty if true and complete details of transaction were available on specified records, is being omitted. 3) Rationalisation of Penalties - Section 76 and 78 Section 76 Section 78 When applicable Cases other than fraud, suppression etc. Fraud, Collusion, wilful misrepresentation Suppression, Maximum 10% of Service Tax 100% of Service Tax In case ST .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion by way of Section 78B is being provided in respect of pending cases. 4) Section 80 struck off The most beneficial Section 80 of Finance Act, 1994 which provides for waiver of penalty in certain bonafide circumstances is being omitted. It is surprising that no reasonable justification has been provided in the Budget where it is being frequently used by Courts to waive penalty in unreasonable demands. This ensures penalty for every non-payment of service tax whatever is the reason. 5) Appeals .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mptions have been withdrawn in this Budget tabulated as under: Sr. No. Service Exemption withdrawn /limited 12 Construction related service provided to the Government, a local authority or a governmental authority a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; a structure meant predominantly for use as (i) an educatio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r (ii) dance, or (iii) theatre Exempt upto ₹ 1,00,000 for a performance 20and 21 Transport by Road/Rail/Vessel Exemption withdrawn on all activities except transportation of food grains including rice and pulses, flour, milk and salt and agriculture produce 29 Sub-Contract Services (a) a mutual fund agent to a mutual fund or assets management company, (b) distributor to a mutual fund or AMC, ( .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lance 26A Life insurance service provided by way of Varishtha Pension Bima Yojna 43 Service provided by a Common Effluent Treatment Plant operator for treatment of effluent 44 Pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables 45 Admission to a museum, zoo, national park, wild life sanctuary and a tiger reserve 46 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(Goods) (b) Rail(Goods + Passenger) (c) Vessel(Goods) 25% 30% 40% 30% 30% 30% Subject to condition that no Cenvat on inputs, input services and capital goods is allowed.** Air Transport of Passenger other than in Economy Class 40% 60% Services provided in relation to chit 70% 100% **Earlier in case of transport by rail, there was no restriction on Cenvat credit, now a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ct: This will reduce unnecessary compliance burden on small contractors and agencies. 2. Following Services have been brought under full reverse charge consequent to withdrawal of the exemption on such services - (i) Service provided by mutual fund agents, mutual fund distributors; and (ii) Service provided by agents of lottery distributor. 3. Aggregator or Representative made liable to pay service tax In case of service provided or agreed to be provided by a person involving an aggregator in an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ware application, and by means of the application and a communication device, enables a potential customer to connect with persons providing service of a particular kind under the brand name or trade name of the aggregator . VIII. Amendments in Rules (w.e.f. 01.03.2015): A. Service Tax Rules, 1994 (1) To move towards ease of doing business, it has been prescribed to grant registration for single premises within 2 days of filing of application. The modalities of the same have been issued by Order .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Air Travel Agent Domestic- 0.6% International- 1.2% Domestic- 0.7% International- 1.4% Life Insurance Service Ist Year- 3% Subsequent Years-1.5% Ist Year- 3.5% Subsequent Years-1.75% Money Changers Services Upto ₹ 1 Lac- 0.12% subject to max. Of ₹ 30 1 Lac-10 Lac: 0.06% Above 10 Lac: 0.012% Upto ₹ 1 Lac- 0.14% subject to max. Of ₹ 35 1 L .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version