Dr. Sanjiv Agarwal

The Finance Bill, 2015 has been enacted as Finance Act, 2015 (Act No. 20 of 2015) on 14th May, 2015 after the assent of President of India. The provisions of Finance Act, 2015 shall therefore, become applicable w.e.f. 14.05.2015 save as otherwise provided in the Act. Such provisions shall be notified to be in force only from the notified date for which a notification shall be issued soon.

(A)  Effective date 14 May, 2015.

The following provisions in Service Tax become applicable w.e.f. 14th May, 2015 –

(1)        Penalty provisions in section 76

(2)        Penalty provisions in section 78

(3)        New section 78B being transitory provisions for new penal provisions

(4)        Omission of section 80 regarding waiver of penalties

(5)        Scope of consideration u/s 67 to include reimbursement of expenses

(6)        New / amended definitions of Foreman of chit fund, Government, Lottery distributor or selling agent

(7)        Amended definition of service u/s 65B (44)

(8)        Illustration in section 66F

(9)        Amendment in section 73(1B) for recovery without SCN and other changes in section 73

(10)      Amendment in section 86 relating to appeal for refund / rebate

(11)      Omission of Rule 6(6A) and 6(7C) of Service Tax Rules, 1994

(12)      Rule 15 of Cenvat Credit Rules in relation to amended penalties

(B)  Effective from notified date (expected to be notified soon)

(1)        Change of rate of Service Tax

(2)        Levy of Swachh Bharat Cess

(3)        New / revised definition of  amusement facility, entertainment event, processing or production of goods in section 65B

(4)        Omission of definition of support services

(5)        Changes in negative list (section 66D)

(6)        Composite rate of Service Tax in Rule 6(7), 6(7A), (7B) and (7C) of Service Tax Rules, 1994. (pertaining to lottery, air travel etc)

(7)        New exemptions / changes in exemption notification No. 25/2012-ST [Entry Nos 30 (job work); admission to exhibition of films, circus, sporting event etc.

(8)        Change in reverse change (Notification No. 30/2012-ST)

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0 responses to “Enactment of Finance Bill, 2015 and Changes in Service Tax”

  1. govindaraj says:

    Sir! I find that in respect of Man Power agency being a proprietary unit the service receiver needs to pay 100% service tax on reverse charge basis. However, you have not shown that in Notification 30/2012-ST. Also I believe in the case of security agency 100% service tax by the service receiver needs to be paid on reverse charges. Can you explain

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