Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Effective Rate of Service Tax under Abatement Reverse Charge and Valuation Rules after introduction of KKC

Service Tax - By: - Bimal jain - Dated:- 17-5-2016 Last Replied Date:- 19-5-2016 - Dear Professional Colleague, Pursuing with an objective to finance and promote initiatives to improve agriculture and farmer welfare, the Government has announced a new cess namely Krishi Kalyan Cess ( KKC ), to be levied at 0.5% on the value of all taxable services w.e.f June 1, 2016. In this regard, a new Chapter VI has been inserted in the Finance Bill, 2016, that contains the following provisions, which is app .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ess or Service tax leviable on such taxable services under Chapter V of the Finance Act, 1994 ( the Finance Act ), or under any other law for the time being in force; The proceeds of KKC shall first be credited to the Consolidated Fund of India and the Central Government may, after due appropriation made by Parliament by law in this behalf, utilise such sums of money of the KKC for such purposes specified above, as it may consider necessary; The provisions of Chapter V of the Finance Act and the .....

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 Credit Rules, 2004: Unlike Swachh Bharat Cess ( SB Cess ) imposed w.e.f. November 15, 2015, which is not Cenvatable neither in the hands of service providers nor manufacturers, in terms of TRU F. No. 334/8/2016-TRU dated February 29, 2016 [Para 3.1], it is provided that Cenvat credit of KKC paid on input services shall be allowed to be used for payment of the proposed Cess on the service provided by a service provider. However, corresponding changes are yet to be incorporated in Rule 3 of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

140/- Add: SB Cess @ 0.5% on (a) 5/- Add: KKC @ 0.5% on (a) 5/- Total 1,150/- Effective rates under the Abatement Notification No. 26/2012-ST dated June 20, 2012 as amended We are summarizing herewith the effective rates of Service tax to be payable for services under Abatement Notification w.e.f June 1, 2016 after imposition of KKC, for easy digest: Sl. No. Description of taxable service Taxable per cent (%) Effective rate of ST: 01.06.2015 to 14.11.2015 (%) Effective rate of ST: 15.11.2015 (af .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

16 Applicable rate of ST w.e.f 01.04.2016 to 31.05.2016: 5.8 (14.5%*40%) 6 (15%*40%) 3 Transport of passengers, with or without accompanied belongings by rail 30 4.2 (14%*30%) 4.35 (14.5%*30%) 4.5 (15%*30%) 4 Bundled services by way of supply of food or any other article of human consumption or any drink, in a premises together with renting of such premises 70 9.8 (14%*70%) 10.15 (14.5%*70%) 10.5 (15%*70%) 5 Transport of passengers by air, with or without accompanied belongings in - (i) economy .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ation to transportation of used household goods. 40 NA Entry inserted vide NN 8/2016-ST dated 01.03.2016 w.e.f 01.04.2016 Applicable rate of ST w.e.f 01.04.2016 to 31.05.2016: 5.8 ( 14.5%*40%) 6 (15%*40%) 8 Services provided by a foreman of chit fund in relation to chit 70 Entry inserted vide NN 8/2016-ST dated 01.03.2016 w.e.f. 01.04.2016, earlier omitted vide NN 08/2015-ST dated 01.03.2015. Applicable rate of ST w.e.f 01.04.2016 to 31.05.2016: 10.15 (14.5%*70%) 10.5 (15%*70%) 9 Renting of moto .....

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 Mega Exemption Notification w.e.f 01.06.2016] 10 Transport of goods in a vessel 30 4.2 (14%*30%) 4.35 (14.5%*30%) 4.5 (15%*30%) 11 Services by a tour operator in relation to- (i) a tour, only for the purpose of arranging or booking accommodation for any person 10 1.4 (14%*10%) 1.45 (14.5%*10%) 1.5 (15%*10%) (ii) tours other than (i) above 40/30 5.6 (14%*40%) 15.11.2015 to 31.03.2016: 5.8 (14.5%*40%) 01.04.2016 to 31.05.2016: 4.35 (14.5%*30%) 4.5 (15%*30%) NN 8/2016-ST dated 01.03.2016 w. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

4.2 (14%*30%) 4.35 (14.5%*30%) 4.5 (15%*30%) Effective from 01.04.2016, a uniform abatement at the rate of 70% is prescribed for services of construction of complex, building, civil structure, or a part thereof, subject to fulfillment of the existing conditions. For the scenario till 31.03.2016: (a) for a residential unit satisfying both the following conditions, namely:- (i) the carpet area of the unit is less than 2000 square feet; and (ii) the amount charged for the unit is less than ₹ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

imposition of KKC, for easy digest: Sl. No Description of a service Rate of ST payable by the SP & SR: 01.06.2015 to 14.11.2015 (%) Effective rate of ST payable by the SP & SR: 15.11.2015 (after Introduction of SB Cess @ 0.5%) to 31.05.2016 (%) Effective rate of ST payable by the SP & SR: 01.06.2016 (after Introduction of KKC @ 0.5%) (%) 1 Services provided or agreed to be provided by an insurance agent to any person carrying on insurance business SP: Nil SR: 14 (100%) SP: Nil SR: 1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vices provided or agreed to be provided by a selling or marketing agent of lottery tickets to a lottery distributor or selling agent of the State Government SP: Nil SR: 14 (100%) SP: Nil SR: 14.5 SP: Nil SR: 15 2 Services of goods transport agency in relation to transportation of goods other than used household goods. After availment of 70% abatement: SP: Nil SR: 30% of 14% = 4.2 (i.e. 100%) After availment of 70% abatement: SP: Nil SR: 4.35 (i.e. 14.5%*30%) After availment of 70% abatement: SP: .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

01.04.2016: Services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services SP: Nil SR: 14 (100%) SP: Nil SR: 14.5 SP: Nil SR: 15 Post 01.04.2016: Services provided or agreed to be provided by a firm of advocates or an individual advocate other than a senior advocate by way of legal services SP: Nil SR: 14 (100%) SP: Nil SR: 14.5 SP: Nil SR: 15 5A Services provided or agreed to be provided by a director of a company or a body corporate to the sa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng of a motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business After availment of 60% abatement: SP: Nil SR: 14%*40% = 5.6 (100%) After availment of 60% abatement: SP: Nil SR: 5.8 (14.5%*40%) After availment of 60% abatement: SP: Nil SR: 6 (15%*40%) (b) Services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on non-abated value to any person who is not engaged in the similar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to be provided by way of supply of manpower for any purpose or security services SP: Nil SR: 14 (100%) SP: Nil SR: 14.5 SP: Nil SR: 15 SP: Any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory SR: Business entity registered as body corporate, located in the taxable territory 9 Services provided or agreed to be provided in service portion in execution of works contract: àIn case of Original .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n the taxable territory SR: Business entity registered as body corporate, located in the taxable territory 10 Any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory SP: Nil SR: 14 (100%) SP: Nil SR: 14.5 SP: Nil SR: 15 11 Any service provided or agreed to be provided by a person involving an aggregator in any manner SP: Nil SR: 14 (100%) SP: Nil SR: 14.5 SP: Nil SR: 15 Effective ra .....

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