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

SERVICE TAX ANALYSIS OF CHANGES APPLICABLE WITH ENACTMENT OF FINANCE BILL 2015

Service Tax - By: - CA. Chitresh Gupta - Dated:- 16-5-2015 - FINANCE BILL 2015 RECEIVED PRESIDENT ASSENT Finance Bill, 2015 has got President Assent on 14th May, 2015 and has become Finance Act, 2015. As you know, Finance Bill 2015 has proposed lot of changes in Service tax provisions, applicable with effect from various dates. Now with the enactment of Finance Bill, 2015, following changes have become applicable: DEFINATIONS INTRODUCED / AMENDED The Term Government Defined: Services, excluding .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mean Central Government, State Government, Union territory and its departments. But it would not include entities whose accounts are not required to be kept under Article 150 of the Constitution. Service Tax liability on Chit fund foremen and distributors or selling agents of lottery: The intention in law has always been to levy Service Tax on the services provided by: (i) chit fund foremen by way of conducting a chit. (ii) distributors or selling agents of lottery, as appointed or authorized .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd distributors or selling agents of lottery in relation to lotteries. CHANGES IN PRINCIPLES OF INTERPRETATION Section 66F which deals with Principles of interpretation of specified description of services or bundled services. It prescribes that unless otherwise specified, reference to a service shall not include reference to any input service used for providing such service. An illustration is being incorporated in this section to exemplify the scope of this provision. As illustrated, referenc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

onsideration amended to include: all reimbursable expenditure or cost incurred and charged by the service provider subject to prescribed circumstances. The intention has always been to include reimbursable expenditure in the value of taxable service. However, in some cases courts have taken a contrary view. Therefore, the intention of legislature is being stated specifically by this provision. (b) amount retained by the distributor or selling agent of lottery from gross sale amount of lottery t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssed and declared in the return but not paid shall be made under section 87, without service of any notice under sub-section (1) of section73,; and (ii) sub-section (4A), that provides for reduced penalty if true and complete details of transaction were available on specified records, is being omitted. Consequently, Rule 6 (6A) of Service Tax Rules which provided for recovery of service tax self-assessed and declared in the return under section 87 is being omitted due to the amendment in section .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

paid within 30 days of issuance of notice under section 73 (1); (iii) a reduced penalty equal to 25% of the penalty imposed by the Central Excise officer by way of an order is to be paid if the service tax, interest and reduced penalty is paid within 30 days of such order; and (iv) if the service tax amount gets reduced in any appellate proceeding, then penalty amount shall also stand modified accordingly, and benefit of reduced penalty ( 25% of penalty imposed) shall be admissible if service ta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the service tax amount is to be paid if service tax, interest and reduced penalty is paid within 30 days of service of notice in this regard; (iii) a reduced penalty equal to 25% of the service tax amount determined by the Central Excise Officer, by an order, is to be paid if the service tax, interest and reduced penalty is paid within 30 days of such order; and (iv) if the service tax amount gets reduced in any appellate proceeding, then penalty amount shall also stand modified accordingly, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(2) of section 73, before the date of enactment of the Finance Bill, 2015; and in respect of cases covered by sub-section (4A) of section 73, if no notice is served, or notice is served under sub-section (1) of section 73 or proviso thereto but no order has been issued under sub-section (2) of section 73, before the date of enactment of the Finance Bill, 2015, penalty shall not exceed 50% of the service tax amount. Section 80: Penalty not to be imposed in certain cases: Section 80 provided fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nce Act, 1994. Rule 6 (6A) which provided for recovery of service tax self-assessed and declared in the return under section 87 is being omitted consequent to the amendment in section 73 for enabling such recovery. SERVICE TAX : CHANGES TO BE APPLICABLE FROM THE DATE TO BE NOTIFIED AFTER THE ENACTMENT OF FINANCE BILL 2015 SERVICE TAX RATE The rate of Service Tax is being increased from 12% plus Education Cesses to 14%. The Education Cess and Secondary and Higher Education Cess shall be subsumed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

at an alternative rate subject to the conditions as prescribed under rule 6 (7), 6(7A), 6(7B) and 6(7C) of the Service Tax Rules, 1994. Consequent to the upward revision in Service Tax rate, the said alternative rates shall also be revised proportionately. Amendments to this effect have been proposed in the Service Tax Rules. The new rates are summarized in the table below: Service Old Rate New Rate Air Travel Agent Domestic boo .....

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 30 0.14 per cent subject to minimum of INR 35 Amount of currency exchanged exceeding INR 0.1 million and upto INR1 million INR 120 and 0.06 per cent INR 140 and 0.07 per cent Amount of currency exchanged exceeding INR1 million INR 660 and 0.012 per cent subject to maximum of INR 6,000 INR 770 and 0.014 per cent subject to maximum of INR 7,000 Lottery Where guarante .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

notified after the enactment of the Finance Bill 2014. CHANGES IN SECTION 66D OF NEGATIVE LIST Entertainment Event or Amusement Facility The Negative List entry that covers admission to entertainment event or access to amusement facility is being omitted [section 66D (j)]. Consequently, the definitions of amusement facility [section 65 B (9)] and entertainment event [section 65B(24)] are also being omitted. The implication of these changes are as follows,- Service Tax shall be levied on the ser .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

However, the existing exemption, by way of the Negative List entry, to service by way of admission to entertainment event, namely, exhibition of cinematographic film, circus, recognized sporting event, dance, theatrical performance including drama and ballet shall be continued, through the route of exemption. For this purpose a new entry is being inserted in notification No. 25/12-ST. The term recognized sporting event has been defined in the proposed amendment in the said notification (No 6/20 .....

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