Service Tax on services provided by Government or local authority to a business entity not notified

Yesterday CBEC has issued Notification no, 13/2015-ST, 14/2015-ST, 15/2015-ST, 16/2015-ST and 17/2015-ST which enables various proposals of Finance Act,2015 which has received the assent of President on 14.05.2015 but we noticed that CBEC has not yet notified the date from service tax will be applicable on services provided by the Government or local authority to a business entity.Presently, services provided by Government or a local authority, excluding certain services specified under clause (a) of section 66D, are covered in the Negative List. An enabling provision has been made, by amending section 66D (a) (iv), to exclude all services provided by the Government or local authority to a business entity from the Negative List [section 109(1) of Finance Act, 2015]. Consequently, the definition of “support service” [section 65 B (49)] is also to be omitted from date to be notified [section 107(h) of Finance Act, 2015].

As and when this amendment is given effect to, all services provided by the Government or local authority to a business entity, except the services that are specifically exempted, or covered by any another entry in the Negative List, shall be liable to service tax. The date from which this amendment would come into effect will be notified in due course.

In Other words provisions discussed above are not being notified at present.

Compiled by CA Sandeep Kanoi

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Tags : Budget (1951) Budget 2015-16 (272) CA Sandeep Kanoi (251)

One response to “Service Tax on services provided by Govt not yet been notified”

  1. Roshan Sharma says:

    “Service Tax on services provided by Government or local authority to a business entity”. In given lines what do you mean by Government or local authority?

  2. pratap says:

    Dear Sir

    kindly suggest to me which rate we charges customer in restaurent busienss

    old rate 4.944%

  3. shivam agrawal says:

    Dear sir
    Kindly tell me those services which are specially exempted or covered in neg. List under any other entry.

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