Ø Finance Bill 2008 stands enacted with effect May 10, 2008.
Ø In case of transactions between Associated Enterprises, service tax is required to be paid on actual receipt of money for taxable service or on crediting / debiting the account whichever is earlier effective from May 10, 2008.
Ø Seven new services came into effect from May 16, 2008 in the net of service tax. These are:
· Information technology software service.
· Stock exchange, commodity exchange and processing and clearing house services.
· Transfer of right to use tangible goods.
· Management of investment under ULIP scheme
· Internet & telecommunication services
Ø All changes in the existing category of services also come into effect from May 16, 2008. The change inter alia includes services such as money changing or purchase or sale of foreign currency, promotion / marketing of game of chance including lottery, services of movers and packers etc.
Ø Service Tax Rules have been amended to provide for option of payment of service tax @ 0.25% on sale / purchase of foreign currency.
Ø An exporter of goods with effect May 16, 2008 is eligible to claim refund in respect of service tax paid on buying / selling of foreign currency and services of transferring right to use tangible goods provided the same are used for exporting goods.