TMI BlogThe increase in Service Tax rate will come into effect from 1st June, 2015. - Except (i) services provided by the Government or local authority to a business entity and (ii) Swachh Bharat Cess - Date in respect of these two shall be notified later.X X X X Extracts X X X X X X X X Extracts X X X X ..... porated through the Finance Act, 2015 , which will come into effect from a date to be notified. In this regard, 1st June, 2015 is being notified as the date on which the provisions as specified in paragraph 2 below will come into effect. Certain provisions in some notifications already issued, will also come into effect from 1st June, 2015. 2. Following provisions will come into effect from 1st June, 2015. 2.1 Section 66B of the Finance Act, 1994 , prescribes the service tax rate. It has been amended by Section 108 of the Finance Act, 2015. The rate of Service Tax is being increased from 12% to 14% (including cesses). The increase in Service Tax rate will come into effect from 1st June, 2015. ( Notification No.14/2015-Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be levied on service by way of admission to entertainment event of concerts, pageants, musical performances concerts, award functions and sporting events other than the recognized sporting event, if the amount charged is more than ₹ 500 per person for the right to admission to such an event. This levy would come into effect from 1st June, 2015. ( Notification No.14/2015-Service Tax, dated 19th May, 2015 refers) 2.3.1 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. Entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .16/2015-Service Tax, dated 19th May, 2015 refers) 2.5 An entry in the Negative list covers betting, gambling or lottery [ Section 66D (i) ]. This entry has been amended by section 109 (3) of the Finance Act, 2015 so as to include an explanation that betting, gambling or lottery shall not include the activity carried out by a lottery distributor or selling agent in relation to promotion, marketing, organising, selling of lottery or facilitating in organising lottery of any kind, in any other manner. The objective of making these exclusions was to make it explicitly clear that while lottery per se is not subject to service tax, aforesaid services in relation to lottery will be taxable. This will come into effect from 1st June, 2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inance Act, 2015 ]. As and when this amendment is given effect to, 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. The date from which this amendment would come into effect will be notified in due course. 4. An enabling provision has been incorporated in the Finance Act, 2015 vide section 117 (Chapter VI) to impose a Swachh Bharat Cess on all or any of the taxable services at a rate of 2% or lower on the value of such taxable services. This cess shall be levied on such services at such rate from such date as may be notified by the Central Government. The date fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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