Following amendments to Section 66D of Finance Act – Negative List will come into effect from 1st June 2015:

(i) Service Tax shall be levied on the service provided by way of access to amusement facility providing fun or recreation by means of rides, gaming devices or bowling alleys in amusement parks, amusement arcades, water parks and theme parks.

(ii) Service tax shall be levied on service by way of admission to entertainment event of concerts, pageants, musical performances concerts, award functions and sporting events other than the recognized sporting event, if the amount charged is more than Rs. 500 per person for the right to admission to such an event.

(iii) Service by way of admission to entertainment event, namely, exhibition of cinematographic film, circus, recognized sporting event, dance, theatrical performance including drama and ballet is exempted from Service Tax vide Notification No. 25/12-ST (Mega exemption Notification).

(iv) Service Tax shall be levied on contract manufacturing/job work for production of potable liquor for human consumption.

(v) An explanation has been inserted in entry (i) covering betting, gambling or lottery to provide that “betting, gambling or lottery” shall not include the activity carried out by a lottery distributor or selling agent in relation to promotion, marketing, organising, selling of lottery or facilitating in organising lottery of any kind, in any other manner. The objective of making these exclusions is to make it explicitly clear that while lottery per se is not subject to service tax, aforesaid services in relation to lottery will be taxable.

However, it is important to note that the due date of applicability of provisions related to taxability of all services provided by the Government or local authority to a business entity are yet to be notified.


NOTIFICATION No 14/2015-ST, Dated: May 19, 2015

G.S.R. (E). – In exercise of the powers conferred by clauses (a), (c) and (f) of section 107, section 108, sub-sections  (2), (3) and (4) of section 109, section 153 and section 159 of the Finance Act, 2015 (No. 20 of 2015), the Central Government hereby appoints the 1st day of June, 2015 as the date on which the provisions of clauses (a), (c) and (f) of section 107, section 108, sub-sections (2), (3) and (4) of section 109, section 153 and section 159 of the said Act shall come into force.

[F.No. 334/5/2015 – TRU]

(Akshay Joshi)
Under Secretary to the Government of India

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One Comment

  1. Vijay Darji says:

    Kindly advise now service tax increased 14% from 1st April.We are in Marine industry. Please advice can we take 0# exemption as per the notification no.25/2012 till.


    Service tax rate for receipent based service like GTA, Man power, which was availed in May but TR-06 Challan to be deposited in June-15.
    what will be the chargaable tax rate

  3. Ramesh says:

    Service Tax @ 14% is applicable for services rendered from 1.6.2015.
    Under the ST point of taxation rules, invoice has to be raised within one month from the date of rendering service and tax to be paid accordingly or on advance payment. As such for services rendered prior to 1/6/15, the rate would be 12.36%. Break up of 14% is 12% ST and 2% Swatch Bharat Cess on the value of taxable service

  4. Z H Rana says:

    I am going to submit a bill to my client on 1st June, for the salary period of 26.04.2015 to 25.05.2015, kindly clarify whether the will be 12.36% or 14%


  5. Yogesh Rao says:

    Kindly refer F.No.341/34/2010-TRU dated the 31st March, 2011 – Amendments in Point of Taxation Rules, 2011 and other related provisions

  6. Yogesh Rao says:

    Kindly refer F. No. 334/5/2015-TRU dated 28-02-2015 Para 3.1 which clarifies that the effective increase in Ser Tax rate will be from existing rate of 12.36% (inclusive of cesses) to 14%, subsuming the cesses.

  7. Adesh dixit says:

    Service tax is applicable is 14% as flat or it will be bifurcated to Cess and HES further on billing pattern and it has been increased to 14% on all services including restaurant

  8. Renjith says:

    Swachh Bharat Cess – (Yet to be notified) Expected to be applicable on all or any of the taxable services at a rate of 2% or lower on the value of such taxable services. They have used the word “on the value of such taxable services” and not “on the value of service tax”

    ie. 14+2=16% may be the effective rate.

  9. Adv. Veeresh Biradar says:

    Kindly have the perusal of 108 of Finance Act assented by president on 14 may 2015, the same has bee reproduced as under:

    108. In section 66B of the 1994 Act, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, for the words “twelve per cent.”, the words “fourteen per cent.” shall be substituted.

  10. CA Anil Khushalani says:

    The notification issued by the CBEC is proper. Clause 106 of the Finance Bill 2015, pertains to the Central Excise Tariff. Clause 108 of the Finance Bill talks about the change in the Section 66B of the Finance Act, 1994 which is in respect to the rate of service tax. So the issued notification is valid.
    For any kind of clarification, still further in relation to above query, please share it.

    With Regards
    CA Anil Khushalani


    The increase of rate was given in clause no. 106 of Finance bill-2015 but in it is nowhere mentioned in notification No.14/2015-ST, Without mentioning this clause, how increase rate would be applicable w.e.f. 01.06.2015 .

  12. Girish says:

    section 66B prescribe the rate of service tax but in notification 14/2015- ST there is no mention of same section, how increase in rate would be apply or effective from 01.06.2015, kindly advise.

  13. Meetesh Shiroya says:

    Sir, What about Swatch Bharat Cess 2%, is it applicable ?
    If it is applicable, then on which services that means on total services or on service tax amount.

  14. spsingh says:

    The increase of rate was made by clause 106 of Finance bill-2015 but in notification No.14/2015-ST, this clause has not been mentioned. Without mentioning this clause, how increase rate would be applicable w.e.f. 01.06.2015, kindly advise.

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