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SERVICE TAX

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..... respect of contracts entered into on or after 1 st March 2016, is being withdrawn with effect from 1 st March, 2016. Nil 5.6% 3. Exemption on the services of transport of passengers, with or without accompanied belongings, by ropeway, cable car or aerial tramway is being withdrawn with effect from 1 st April, 2016. Nil 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 1 st June, 2016. Service Tax is being levied on transportation of passengers by air conditioned stage carriage with effect from 1 st 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- .....

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..... ax with effect from 1 st April, 2016. 14% Nil 8. Services provided by National Centre for Cold Chain Development under Department of Agriculture, Cooperation and Farmer s Welfare, Government of India, by way of knowledge dissemination are being exempted from Service Tax with effect from 1 st April, 2016. 14% Nil 9. Services provided by Biotechnology Industry Research Assistance Council (BIRAC) approved biotechnology incubators to incubatees are being exempted from Service Tax with effect from 1 st April, 2016. 14% Nil 10. Services provided by way of skill/vocational training by training partners under Deen Dayal Upadhyay Grameen Kaushalya Yojana are being exempted from Service Tax with effect from 1 st April, 2016. 14% NIL 11. Services of assessing bodies empanelled centrally by Directorate General of Training, Ministry of Skill Development Entrepreneurship are being exempted from Service Tax with effect from .....

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..... d in respect of services provided under contracts which had been entered into prior to 01.03.2015 on payment of applicable stamp duty, with retrospective effect from 01.04.2015. 5.6% of total amount Nil 6 Services provided by way of construction, maintenance etc. of canal, dam or other irrigation works provided to bodies set up by Government but not necessarily by an Act of Parliament or a State Legislature, during the period from the 1 st July, 2012 to 29th January, 2014, are being exempted from Service Tax with consequential refunds, subject to the principle of unjust enrichment. 5.6% of total amount Nil 7 Services provided by the Indian Institutes of Management (IIM) by way of 2 year full time Post Graduate Programme in Management (PGPM) (other than executive development programme), Integrated Programme in Management and Fellowship Programme in Management (FPM) are being exempted from Service Tax with effect from 1 st March, 2016. 14% NIL 8 The services provided by mutual fund .....

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..... d 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 way of construction of residential complex, building, civil structure, or a part thereof, is being rationalized at 70% by merging the two existing rates (70% for high end flats and 75% for low end flats). 3.5%/ 4.2% 4.2% 6 The abatement rate in respect of services by a tour operator in relation to packaged tour (defined where tour operator provides to the service recipient transportation, accommodation, food etc) and other than packaged tour is being rationalized at 70%. 3.5%/ 5.6% of amount charged 4.2% of amount charged 7 The abatement on shifting of used household goods by a Goods Transport Agency (GTA) is being rationalized at the rate of 60%, without CENVAT credit on inputs, input services and capital goods. (The existing rate of abatement of 70% allowed on transport of other goods by GTA .....

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..... AT 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 way of renting of motor-cab is being prescribed with effect from 1 st April, 2016. 8 Service tax on the services of Information Technology Software on media bearing RSP is being exempted from Service Tax with effect from 1 st March, 2016 provided Central .....

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..... NVAT credit rules are being amended so as to allow CENVAT credit of Service Tax paid on amount charged for 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 1 st 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 .....

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