Changes by way of notifications issued on 19th May’2015 to be effective from 1st June’2015
13/2015
Omits the definition of 'chit' from the abatement notification 26/2012.
“chit” means a transaction whether called chit, chit fund, chitty, kuri, or by whatever name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead) by way of periodical installments over a definite period and that each subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to a prize amount,
14/2015
Definition of amusement facility has been omitted
"amusement facility" means a facility where fun or recreation is provided by means of rides, gaming devices or bowling alleys in amusement parks, amusement arcades, water parks, theme parks or such other places but does not include a place within such facility where other services are provided;
Definition of entertainment event omitted
"entertainment event" means an event or a performance which is intended to provide recreation, pastime, fun or enjoyment, by way of exhibition of cinematographic film, circus, concerts, sporting event, pageants, award functions, dance, musical or theatrical performances including drama, ballets or any such event or programme;
a. “Alcoholic liquors for human consumption,” has been omitted from the definition of process amounting to manufacture or production of goods.
b. Rate of Service tax increased from 12.36% to 14%.
c. Process amounting to manufacture or production of goods excluded alcoholic liquor for human consumption in the negative list, thereby made taxable.
d. 'Betting, gambling and lottery in negative list shall not include the activity specified in Expln 2 to the definition of 'service'. Therefore, any activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination to another form, currency or denomination for which a separate consideration is charged shall be taxable.
e. Admission to entertainment events or access to amusement facilities made taxable.
f. Education cess and Sec. Hr. Ed. Cess are removed.
15/2015 - Increase in special rates - Lottery, Air travel, Insurance, forex detailed as under:
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A. Booking of tickets for travel by air by an air travel agent under Rule 6 (7) of Service Tax Rules, 1994 |
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New Service Tax Rate wef 1st June 2015 |
Old Rate |
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1. Domestic Booking |
0.70% of basic fare |
0.60% of basic fare |
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2. International Booking |
1.4% of basic fare |
1.2%. of basic fare |
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“basic fare” means that part of the air fare on which commission is normally paid to the air travel agent by the airline. |
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B. Insurer carrying life insurance business under Rule 6(7A)(ii) of Service Tax Rules, 1994 |
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New Rate wef 01.06.2015 |
Old Rate |
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1. 1st year |
3.50% of Premium Charged |
3% of Premium Charged |
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2. Subsequent Years |
1.75% of Premium Charged |
1.50% of Premium Charged |
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C Sale or purchase of Foreign Exchange, including money changing under Rule 6(7B) of Service Tax Rules, 1994 |
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Gross Amount of Currency Exchanged |
New Service Tax Rate wef 1st June 2015 |
Old Rate |
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1. Up to Rs. 1,00,000 |
0.14% of gross amount of currency exchanged(min.Rs.35) |
0.12% of gross amount of currency exchanged(min.Rs.30) |
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2. 1,00,000-10,00,000 |
Rs.140 + 0.07% of gross amount exceeding 1 lakh |
Rs.120 + 0.06% of gross amount exceeding 1 lakh |
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3. exceeding 10,00,000 |
Rs.770 + 0.014% of gross amount exceeding 10 lakhs(max. Rs.7000) |
Rs.660 + 0.012% of gross amount exceeding 10 lakhs(max. Rs.6000) |
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D. Taxable service of promotion, marketing, organising or in any other manner assisting in organising lottery under Rule 6(7C) of Service Tax Rules, 1994 |
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Guaranteed Prize Payout |
New Service Tax Rate wef 1st June 2015 |
Old Rate |
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Prize payout More than 80% |
Rs. 8,200/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw |
Rs. 7,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw |
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Prize payout Less than 80% |
Rs. 12,800/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw |
Rs. 11,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw |
16/2015
i. Exemption to Job work on processing of liquor for human consumption withdrawn.
ii. Following services made exempted from service tax:
a. Admission to exhibition of cinematographic film, circus, dance , theatrical performance , including drama or ballet , recognized sporting event exempted.
b. Award function, concert, pageant, musical performance , sporting event other than recognised sporting event exempted provided consideration is not more than Rs.500
17/2015
Exempts Power System development fund scheme of Ministry of Power subject to production of certificate before Central excise officer and other conditions.
Source: Internet and government notifications
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