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.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
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]
Under Secretary to the Government of India