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 .
Though I have tried to incorporate
major changes in the Table with due precautions, the readers may
please feel free to email me at nitesh@globaltax.co.in 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%
|
|
|
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 INR 1 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
|
|
|
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%
|
|
|
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
|
|
|
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
|
|
|
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
|
|
|
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
|
Now exemption
shall be available ONLY in respect of the following such services provided to
the Government, Governmental Authority
Or a Local
Authority
a)
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);
b)
canal, dam or other irrigation works;
c)
pipeline, conduit or plant for (i) water supply (ii) water treatment, or
(iii) sewerage treatment or disposal;
|
|
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
|
|
|
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
|
||
|
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
|
|
|
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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