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REVISED READY RECKNOR SERVICE TAX CHANGES 01-04-2015

In this Ready –to- Read Table, I have endeavored to encapsulate major changes in service tax that are effective from 01-04-2015 along with proposed changes in service tax rates as enshrined in the  Finance Bill, 2015.

My dear colleagues may take out the print outs of the enclosed table and may use the same as ready reference.

Though I have tried to incorporate major changes in the Table with due precautions, the readers may please feel free to email me at rks9814214503@gmail.com for any error(s). Your kind suggestions are also welcome.

Sr.

No.

Concerned Service And Related Issue

Provided

by

Provided to

Previous Position

Position w. e. f.

01-04-2015

Comments

1

All services except where composite rate is applicable like air ticketing etc.

NA

Rate of Service tax was 12.36%

Now as on 01-04-2015 rate of service tax is the same 12.36%

New rate will be 14%

Education cess and secondary and higher education cess shall be subsumed in the rate of 14% after enactment of finance bill 2015

2

Air Travel Domestic Booking

NA

0.06%

0.06%

New rate after the enactment of Finance Bill 2015 shall be

0.07%

3

Air Travel International Booking

NA

1.2%

1.2%

New rate after the enactment of Finance Bill 2015 shall be

1.4%

4

Life Insurance First Year Premium

NA

3.%

3%

New rate after the enactment of Finance Bill 2015 shall be 3.5%

5

Life Insurance Subsequent Year premium

NA

1.5%

1.5%

New rate after the enactment of Finance Bill 2015 shall be

1.75%

Sr.

No.

Concerned Service

And

Related Issue

Provided by

Provided to

Previous Position

Position w. e. f.

01-04-2015

Comments

6

Money Changer Services where Amount of currency exchanged upto  RS. 0.1 million

NA

0.12 per cent subject to minimum of RS. 30

0.12 per cent subject to minimum of RS. 30

New rate after the enactment of Finance Bill 2015 shall be

Rs. 35

7

Money Changer Services where Amount of currency exchanged exceeding RS. 0.1 million and upto INR1 million

NA

Rs. 120 and 0.06 per cent

RS. 120 and 0.06 per cent

New rate after the enactment of Finance Bill 2015 shall be

RS. 140 and 0.07 per cent

8

Money Changer Services where Amount of currency exchanged exceeding INR1 million

NA

Rs 660 and 0.012 per cent subject to maximum of RS. 6,000 -

Rs 660 and 0.012 per cent subject to maximum of RS.  6,000

New rate after the enactment of Finance Bill 2015 shall be

Rs 770 and 0.014 per cent subject to maximum of RS.  7,000

9

Lottery Where guaranteed prize payout is more than 80 per cent

NA

Rs. 7000

Rs. 7000

New rate after the enactment of Finance Bill 2015 shall be

Rs. 8200

10

Lottery Where guaranteed prize payout is < 80 %

NA

Rs. 11000

Rs. 11000

New rate after the enactment of Finance Bill 2015 shall be

Rs. 12800

Sr.

No.

Concerned Service

And

Related Issue

Provided by

Provided to

Previous Position

Position w. e. f.

01-04-2015

Comments

11

Transport of goods by Road

NA

Rate of abatement was 75%

Now Rate of abatement is

70%

Now taxable portion is 30% previously 25% was taxable so effective rate now shall be 

12.36*30/100=3.708%

Previously it was 3.090%

12

Transport of goods by vessels

NA

Rate of abatement was 60%

Now Rate of abatement is

70%

Now taxable portion is 30% previously 40% was taxable so effective rate now shall be 

12.36*30/100=3.708%

Previously it was 4.944%

13

Transport of Passenger by air (Other than economy)

NA

Rate of abatement was 60%

Now Rate of abatement is

40%

Now taxable portion is 60% previously 40% was taxable so effective rate now shall be 

12.36*60/100=7.416%

Previously it was 4.944%

Sr.

No.

Concerned Service

And

Related Issue

Provided by

Provided to

Previous Position

Position w. e. f.

01-04-2015

Comments

14

Manpower supply

  1. Individual,
  2. HUF
  3. Partnership

A body corporate

Partial reverse charge mechanism

Full reverse charge

To be paid by Service Recipient

Previously partial reverse charge and now full reverse charge in such cases

15

Security services

  1. Individual,
  2. HUF
  3. Partnership

A body corporate

Partial reverse charge mechanism

Full reverse charge

To be paid by Service Recipient

Previously partial reverse charge and now full reverse charge in such cases

16

Transport of Goods Carriage

NA

Previously exemption was available to

Agricultural Produce

Foodstuff

Flours

Tea

Coffee

Jiggery

Sugar

Milk products

Salt

Edible oil

Now Exemption is available to

Agricultural Produce

Food grains

Rice

Pulses

Flour

Milk

Salt

Now exemption withdrawn on the following

All foodstuff except food grains

Tea

Coffee

Jiggery

Sugar

Milk products

Edible oil

Sr.

No.

Concerned Service

And

Related Issue

Provided by

Provided to

Previous Position

Position w. e. f.

01-04-2015

Comments

17

Transport by rail or vessel

NA

Previously exemption was available to

Agricultural Produce

Foodstuff

Flours

Tea

Coffee

Jiggery

Sugar

Milk products

Salt

Edible oil

Now exemption is available only to

Agriculture produce

Milk

Salt

Food grains including

Flours

Pulses

Milk

Rice

Now exemption withdrawn on the following

 All foodstuff except food grains

Tea

Coffee

Jiggery

Sugar

Milk products

Edible oil

Sr.

No.

Concerned Service

And

Related Issue

Provided by

Provided to

Previous Position

Position w. e. f.

01-04-2015

Comments

18

construction,

erection,

commissioning,

installation,

completion,

fitting out,

repair,

maintenance,

renovation,

or

 alteration

Any person

government, local authority or

a governmental authority

 These services were exempt

construction, erection, commissioning, installation, completion, fitting out,repair, maintenance, renovation, or alteration

of

a civil structure meant for use other than for commerce, industry, etc.
 

a structure meant predominantly for use as an educational, clinical, or an art or cultural establishment.
 

a residential complex predominantly meant for self-use or the use of their employees.

Now these services will be taxable

Now exemption shall be available ONLY in respect of the following such services provided to the Government, Governmental Authority

Or a Local Authority

  1. a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);
  2. canal, dam or other irrigation works;
  3. pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal;

Sr.

No.

Concerned Service

And

Related Issue

Provided by

Provided to

Previous Position

Position w. e. f.

01-04-2015

Comments

19

Exemption to services provided by a performing artist in folk or classical art form of (i) music, or (ii) dance, or (iii) theater,;

NA

These services were exempt without any monetary limit

Now the exemption shall be available on in such cases

where amount charged is up to Rs. 1,00,000 for a performance

Such services for a single performance for less than Rs. 1 Lac shall continue to be exempt

The exemption shall not apply if services provided by artist as a brand ambassador

20

All Services

Cenvat Credit under partial reverse charge cases

NA

Cenvat Credit under partial reverse charge basis was available if the payment to the service provider was made

Cenvat Credit under partial reverse charge basis shall be  available even if payment to service provider is not made

Now under Both Partial and Full reverse charge cases, CENVAT credit is available if payment of service tax has been made even if payment for service is not made to the service provider

21

Services of construction, erection, commissioning or installation of original works

NA

For Airport or port

Was exempt

For Airport or port is now taxable

Now such services made taxable

22

Services provided by mutual fund agents,

Now taxable as exemption stands withdrawn w.e.f. 01-04-2015

Were exempt

Now Full reverse charge

To be paid by Service Receiver

Now such services made taxable and

on full reverse charge basis

23

Services provided by mutual fund distributors

Now taxable as exemption stands withdrawn w.e.f. 01-04-2015

Were exempt

Now Full reverse charge

To be paid by Service Receiver

Now such services made taxable and

on full reverse charge basis


Sr.

No.

Concerned Service

And

Related Issue

Provided by

Provided to

Previous Position

Position w. e. f.

01-04-2015

Comments

24

Services provided by agents of lottery distributor

Now taxable as exemption stands withdrawn w.e.f. 01-04-2015

Were exempt

Now Full reverse charge

To be paid by Service Receiver

Now such services made taxable and on full reverse charge basis

25

Any service provided by way of transportation of a patient to and from a clinical establishment by a clinical establishment is exempt from Service Tax now these services will include all ambulance services.

NA

Any service provided by way of transportation of a patient to and from a clinical establishment by a clinical establishment is exempt from Service Tax

Now these services will include all ambulance services.

Scope of exemption extended

26

Life insurance service provided by way of Varishtha Pension Bima Yojna.

NA

Taxable

Now Exempt

27

Service provided by a Common Effluent Treatment Plant operator for treatment of effluent.

NA

Taxable

Now Exempt

Sr.

No.

Concerned Service

And

Related Issue

Provided by

Provided to

Previous Position

Position w. e. f.

01-04-2015

Comments

28

Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables.

NA

Taxable

Now Exempt

29

Service provided by way of admission to a museum, zoo, national park, wild life sanctuary and a tiger reserve.

NA

Previously any service provided by way of admission to museum zoo etc was exempt if these were provided by Government or Local Authority.

Now these services provided by any person shall be exempt

Scope of exemption widened

Sr.

No.

Concerned Service

And

Related Issue

Provided by

Provided to

Previous Position

Position w. e. f.

01-04-2015

Comments

30

Service provided by way of exhibition of movie by the exhibitor (theatre owner) to the distributor or an association of persons consisting of such exhibitor as one of it’s members is being exempted.

NA

Taxable

Now Exempt

 

31

Goods transport agency service provided for transport of export goods by road from the place of removal to a land customs station (LCS).

NA

Goods transport agency service provided for transport of export goods by road from the place of removal to an inland container depot, a container freight station, a port or airport was exempt from Service Tax

Now exemption is extended to exempt such services when provided for transport of export goods by road from the place of removal to a land customs station (LCS).

Scope of exemption extended


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Category Service Tax, Other Articles by - CA. Rajeev K. Sharma 



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