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TMI BlogSERVICE TAXX X X X Extracts X X X X X X X X Extracts X X X X ..... 14% 4. The Negative List entry that covers 'service of transportation of passengers, with or without accompanied belongings, by a stage carriage' is being omitted with effect from 1st June, 2016. Service Tax is being levied on transportation of passengers by air conditioned stage carriage with effect from 1st June, 2016, at the same level of abatement as applicable to the transportation of passengers by a contract carriage, that is, 60% without credit of inputs, input services and capital goods. Nil 5.6% III New Exemptions 1. Services by way of construction etc. in respect of- (i) housing projects under Housing For All (HFA) (Urban) Mission/Pradhan Mantri Awas Yojana (PMAY); (ii) low cost houses up to a carpet area of 60 square metres in a housing project under "Affordable housing in Partnership" component of PMAY (iii) low cost houses up to a carpet area of 60 square metres in a housing project under any housing scheme of the State Government, are being exempted from Service Tax with effect from 1st March, 2016. 5.6% Nil 2. The service of life insurance business provided by way of annuity under the National Pension System regulated by Pension Fund Regulatory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enhanced from ₹ 1 lakh to ₹ 1.5 lakh charged per event with effect from 1st April, 2016. 14% Nil IV Relief Measures 1 To provide level playing field to Indian Shipping lines vis-a-vis foreign shipping lines, it is being proposed to: a) zero rate the services provided by Indian Shipping lines by way of transportation of goods by a vessel to outside India with effect from 1st March, 2016, and b) impose Service Tax on services provided by them by way of transportation of goods by a vessel from outside India up to the customs station in India with effect from 1st June, 2016 so as to complete the credit chain and enable Indian Shipping Lines to avail and utilize input tax credits. No credit Nil Inputs, input services & capital goods credit 14% 2 Notification No. 41/2012- ST, dated the 29th June, 2012 was amended by notification No.1/2016-ST dated 3rd February, 2016 so as to, inter alia, allow refund of Service Tax on services used beyond the factory or any other place or premises of production or manufacture of the said goods for the export of the said goods. This amendment is being made effective from the date of application of the parent notification (i.e. 1s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 60 Lakh, the rate of interest on delayed payment of Service Tax will be 12%. [The above changes will come into effect on the day the Finance Bill receives the assent of the President.] Customs 18% Excise 18% Service Tax 18% 24% 30% Customs, Excise & Service Tax 15%; 24% in case of Service Tax collected but not deposited to the exchequer VI Rationalization of Abatements Existing Proposed 1 Credit of input services is being allowed on transport of passengers by rail at the existing rate of abatement of 70%. 4.2% Without credit 4.2% With input service credit 2 Credit of input services is being allowed on transport of goods, other than in containers, by rail at the existing rate of abatement of 70%. 4.2% Without credit 4.2% With input service credit 3 Credit of input services is being allowed on transport of goods in containers by rail at a reduced abatement rate of 60%. 4.2% Without credit 5.6% With input service credit 4 Credit of input services is being allowed on transport of goods by vessel at the existing rate of abatement of 70%. 4.2% Without credit 4.2% With input service credit 5 The abatement rate in respect of services by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g in organizing lottery of any kind, in any other manner, of the State Government as per the provisions of the Lotteries (Regulation) Act, 1998 (17 of 1998), is leviable to Service Tax. 5 Notification No. 27/2012 - C.E. (N.T.) dated 18.06.2012 is being amended with effect from 1st March, 2016 so as to provide that time limit for filing application for refund of CENVAT Credit under Rule 5 of the CENVAT Credit Rules, 2004, in case of export of services, is 1 year from the date of : a) receipt of payment in convertible foreign exchange,whereprovision ofservicehas been completed prior to receipt of such payment; or b) issue of invoice, wherepayment, for the service has been received in advance prior to the date of issue of the invoice. 6 Assignment by the Government of the right to use the radio-frequency spectrum and subsequent transfers thereof is being declared as a service under section 66E of the Finance Act, 1994 so as to make it clear that assignment of right to use the spectrum is a service leviable to Service Tax and not sale of intangible goods. 14% 14% 7 A condition mandating inclusion of cost of fuel in the consideration for availing abatement on the services by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or assignment by Government or any other person of a natural resource, over such period of time as the period for which the rights have been assigned. [The above amendment shall come into effect from 1st April, 2016.] X Miscellaneous Period for issuing demand notices 1 Section 73 of the Finance Act, 1994 is being amended so as to increase the limitation period from 18 months to 30 months for short levy/non levy/short payment/non-payment/erroneous refund of Service Tax. Other changes in the Finance Act, 1994 2 The Negative List entry covering 'educational services by way of (a) pre-school education and education up to higher and secondary school or equivalent, (b) education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force and (c) education as a part of an approved vocational education course [Section 66D (l)] and the definition of 'approved vocational education course' [section 65B (11)] are being omitted. However, the exemption shall continue by way of exemption notification No. 25/2012 - ST. 3 In the last Budget, the Customs, Central Excise and Service Tax laws were amended to provide for closure of proceedings wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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