CA Rajeev K. Sharma

CA Rajeev SharmaIn 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%
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
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;
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
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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Tags : Budget (1956) Budget 2015-16 (272)

0 responses to “Ready Recknor Service Tax Changes effective from 01-04-2015”

  1. Darshit Jain says:

    Transportation charges on edible oil,Soya Doc, and Soya flour is exempted or taxable…??? In FY 2015-2016

  2. Trilok says:

    Dear Sir,

    Please confirm, when new service tax rate will be applicable i.e 12.36 to 14%.

  3. k subramanian says:

    Very useful.Thank you

  4. Pratip Kumar Mukherjee says:

    Sir,What about the changes in abatement in accommodation service provided by Guest Houses And what will be the Service tax for Guest Houses.

  5. sandeep says:

    Dear sir;
    . Please give me gta new abatement notification about from 75% to 70%

  6. G S Krishnan says:

    Last column is not readable

  7. Kumar Yogesh says:

    Sir,
    Manpower supply services provide by Individual,HUF,Partnership to Manufacturing farm (Partnership) then who is responsible for S.Tax payment ?

  8. narendra k agarwal says:

    Sir,

    What about of sale of flats or commercial property by what rate developers or builders should pay service tax ?

    regards,
    Narendra K Agarwal

  9. Pramod says:

    Sir the last coloume of remarks is not readable properly

  10. Dhananjay Bhamare says:

    Need to change design of table and database as last information in last colomn of an article is not readable completely. Many of the information hides.

  11. G.Vijayakumar says:

    Sir,

    The service tax table is very useful.

    Pl continue your service.

    Thank you

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