Budget 2015-16

Updated List of Exempt Services under Service Tax

Service Tax - In this Article we have prepared a List of Services which are exempt from Service Tax as on date from Service Tax after considering Principal Service Tax Notification 25/2012-Service Tax and subsequent Notifications issued by CBEC from time to time....

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TDS on EPF and Submission of Form 15G & 15H

Service Tax - Simplification of Tax Deduction at Source (TDS) mechanism for Employees Provident Fund Scheme (EPFS) Under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (EPF & MP Act, 1952), certain specified employers are required to comply with the Employees Provident Fund Scheme, 1952 (EPFS). However, these employers are also...

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Services covered under Reverse Charge Mechanism from 01.06.2015

Service Tax - Shivani Mangla Services covered under Reverse Charge Mechanism from 01.06.2015 (with % and type of person) S.No. Description of service Service Provider Service Receiver 1 Insurance Agency Services Insurance Agent Any person carrying on insurance business NIL (0%) 100% (14%) 1A Recovery Agent Services Recovery Agent Banking co./ Financial...

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Recent Changes In Service Tax Appellate Provisions

Service Tax - Amendments shall have the following effect w.e.f. 14.05.2015– (1) The remedy of appeal to Tribunal u/s 86 is not available in every case as it has now been provided subject to the saving clause 'save as otherwise provided herein'. The provisos added provide that saving. Thus, scope of section 86 has been curtailed. (2) Any appeal agai...

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Summary of Amendments in Indirect Taxes by Budget 2015

Service Tax - AMENDMENTS IN CENTRAL EXCISE ACT, 1944-1. Factors of Production for Tobacco Related Products – Explanation 3 to Section 3A- This amendment will enable the Central Government to specify more than one factor relevant to the production of notified goods under Section 3A. Accordingly, Central Government has issued NN 4/2015 & NN 5/2015 date...

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Download Finance Bill 2015 approved by President of India

Service Tax - Finance bill, 2015 has received the presidential assent on 14th May 2015 and has now become Finance Act, 2015 (NO. 20 OF 2015) . All the provisions which were due to be effective from the date the Finance Bill receives the assent of the President have now been implemented w.e.f. 14th May 2015....

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Rajya Sabha passes Finance Bill, 2015

Service Tax - After being passed by the lower house of Parliament, the Rajya Sabha on Thursday, May 7, 2015 has passed the Finance Bill, 2015. The Bill is already been passed by Lok Sabha on 30.04.2015 and will  now needs presidents assent to become and act and effective. Also Read- Lok Sabha approves Finance bill 2015 with […]...

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PM Letter to Farmers on Budget 2015

Service Tax - India is a country of farmers. As a nation, our roots lie in our villages and farms, which have been providing sustenance to our people for generations. Our festivals, fairs and functions are all based on our agricultural heritage and background. You are our Annadaata, for which we are eternally grateful and indebted to you....

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PM Letter to youth of the country on Budget 2015

Service Tax - Prime Minister 31 March 2015 My Dear Young friends, With 65% of our population under the age of 35, India is the youngest nation in the world. It is built on your toil and enterprise. You are our competitive advantage- our biggest strength. In your success, lies the success of the nation. Yet, not enough […]...

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PM Letter to Industrial Workers on Budget 2015

Service Tax - A Shrama Yogi like you fulfills many of our nation1s needs. You build India through your sweat and toil. You support the economy with much needed muscle and skills. The products that we use everyday are a result of your labour. Your importance in our society can thus not be emphasized enough....

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Clarification on rate of service tax on restaurant service

Circular No. 184/3/2015-Service Tax - (03/06/2015) - Circular No. 184/3/2015-ST Dated the 3rd June, 2015 It is further clarified that exemption from service tax still continues to services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having the facility of air-conditioning or central ai...

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TDS on withdrawal from PF wef 1st June 2015

WSU/6(1)2011/IT/Vol-IV/5931 - (21/05/2015) - The Finance Act, 2015 (20 of 2015) has Inserted a new section 192A regarding the payment of accumulated provident fund balance due to an employee. The Provision Shall Take effect from 01st June 2015. Income Tax should be deducted at source (TDS) at the following rates if at the time of payment of th...

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Reg. Refund of Unutilized Cenvat Credit and on supply of manpower services

Notification No. 15/2015-Central Excise (N.T.) - (19/05/2015) - Notification No. 15/2015-Central Excise (N.T.) Dated: May 19, 2015- Amends notification no. 12/2014 CE(NT) - Refund of Unutilized Cenvat Credit under Rule 5B of Cenvat Credit to the Service Provider - No refund in respect of supply of manpower for any purpose or security services w.e.f. 1-6-2015...

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Cenavt Credit reversal rate increased to 7% under rule 6 wef 01.06.2015

Notification No. 14/2015-Central Excise (N.T.) - (19/05/2015) - Notification No. 14/2015-Central Excise (N.T.)), Dated: May 19, 2015 Amends Rule 6 of the Cenvat Credit Rules, 2004 - Rate of amount of reversal of Credit increased from 6% to 7% with effect from 1st of June, 2015....

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Service Tax Changes applicable from 01.06.2015

D.O.F.No.334/5/2015-TRU, - (19/05/2015) - The Finance Bill, 2015, has received the assent of the Honorable President and has been notified. In the Budget, 2015, certain amendments in the Finance Act, 1994 have been incorporated through the Finance Act, 2015, which will come into effect from a date to be notified. In this regard, 1st June, 2...

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Recent Posts in "Budget 2015-16"

Updated List of Exempt Services under Service Tax

In this Article we have prepared a List of Services which are exempt from Service Tax as on date from Service Tax after considering Principal Service Tax Notification 25/2012-Service Tax and subsequent Notifications issued by CBEC from time to time....

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TDS on EPF and Submission of Form 15G & 15H

Simplification of Tax Deduction at Source (TDS) mechanism for Employees Provident Fund Scheme (EPFS) Under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (EPF & MP Act, 1952), certain specified employers are required to comply with the Employees Provident Fund Scheme, 1952 (EPFS). However, these employers are also...

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Posted Under: Service Tax |

Services covered under Reverse Charge Mechanism from 01.06.2015

Shivani Mangla Services covered under Reverse Charge Mechanism from 01.06.2015 (with % and type of person) S.No. Description of service Service Provider Service Receiver 1 Insurance Agency Services Insurance Agent Any person carrying on insurance business NIL (0%) 100% (14%) 1A Recovery Agent Services Recovery Agent Banking co./ Financial...

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Posted Under: Service Tax |

Recent Changes In Service Tax Appellate Provisions

Amendments shall have the following effect w.e.f. 14.05.2015– (1) The remedy of appeal to Tribunal u/s 86 is not available in every case as it has now been provided subject to the saving clause 'save as otherwise provided herein'. The provisos added provide that saving. Thus, scope of section 86 has been curtailed. (2) Any appeal agai...

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Posted Under: Service Tax |

Summary of Amendments in Indirect Taxes by Budget 2015

AMENDMENTS IN CENTRAL EXCISE ACT, 1944-1. Factors of Production for Tobacco Related Products – Explanation 3 to Section 3A- This amendment will enable the Central Government to specify more than one factor relevant to the production of notified goods under Section 3A. Accordingly, Central Government has issued NN 4/2015 & NN 5/2015 date...

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Posted Under: Service Tax |

Applicability of Service Tax on Entry to Amusement Facility

Access to amusement facilities was not covered under the scope of service tax till 31st May,2015 was mainly due to the reasons that entertainment duty falls in the State List i.e. only the State Governments can impose any kind of tax on them as per the Entry No. 62 of List II of Schedule VII of Constitution....

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Posted Under: Service Tax |

Impact of Service Tax on Uber, Ola!!

The dawn of Cab aggregators Uber, Ola, etc.., has been seen in India in recent times, but the laws pertaining to service tax in the aggregators model of service was in gray. The aggregator model of service is new in India and there has been a lack of clarity about service tax rules that must apply toward Uber, Ola, etc......

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Posted Under: Service Tax |

Amnesty on pending SCNs for 30 days… from 14/05/2015

The Finance Act,2015 has come into effect from 14/05/2015.The new liberalized scheme on penalties under section 76 and 78 has been made applicable to all pending SCNs in Service tax matters and no order has been passed,till this date.The newly inserted section 78B,in the Finance Bill,2015 had specifically clarified this....

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Posted Under: Service Tax |

Service tax on Amusement Parks and Entertainment events

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....

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Posted Under: Service Tax |

Analysis of Service tax applicability on Chit Fund

Amendment made by Finance Bill, 2015 by way of insertion of explanation to Sec 65B(44) , it is clear that the Govt. intends to collect the service tax on foreman commission . However, it is well settled position of the law that the any explanation bringing the new activity into tax net would not be having a retrospective effect unless the...

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Posted Under: Service Tax |

Service Tax Tax Rate 14% w.e.f. 01-06-2015 and related provisions

The Finance Bill, 2015, has received the assent of the Honorable President and has been notified. 1st June, 2015 is being notified as the date on which the following provisions will come into effect. 1. The rate of Service Tax is being increased from 12% to 14% (including cesses). (Notification No.14/2015-Service Tax, dated 19th May, 2015...

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Clarification on Indirect Transfer Provisions under Income Tax Act, 1961

The Honorable Finance Minister, during his Budget speech, spoke about moving towards a non adversarial tax regime which would be in consonance with global policy. In doing so, he has tried to address the concerns of foreign investors by making significant changes to the indirect transfer tax provisions under the Income Tax Act, 1961 (Act)...

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Posted Under: Service Tax |

Taxsutra Analysis of Finance Act, 2015 amendments effective from 1st June, 2015

Key Changes / Amendments effective from 1st June, 2015 : 1. Section 132B: The asset seized u/s. 132 or requisitioned u/s132A may be adjusted against the amount of liability arising on an application made before the Settlement Commission u/s. 245C (1). 2. Section 151 : No notice shall be issued u/s. 148 by an Assessing […]...

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Service Tax Rates chart from 01/06/2015

Normal Service tax rate with effect from 1st June 2015 is 14%. However applicable rate is different for many services which may be subject to fulfillment of some conditions. This is mainly due to material value or non-service element included in total value of these services....

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Posted Under: Service Tax |

Advance in cash for Property Covered by Section 269SS & 269T wef 01.06.2015

Mode of taking or accepting certain loans, deposits and specified sums and mode of repayment of loans or deposits and specified advances The earlier provisions contained in section 269SS of the Income-tax Act provide that no person shall take from any person any loan or deposit otherwise than by an account payee cheque or account [&hellip...

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Clarification on rate of service tax on restaurant service

Circular No. 184/3/2015-Service Tax (03/06/2015)

Circular No. 184/3/2015-ST Dated the 3rd June, 2015 It is further clarified that exemption from service tax still continues to services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having the facility of air-conditioning or central air-heating in any part of the establishme...

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Changes In Direct Tax Provisions Effective from 01-06-2015 along with PPT

As per Section 269SS if specified sum (any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place) taken or accepted in cash is Rs. 20,000 or more , penalty equal to amount taken shall be imposed under S. 271D....

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Posted Under: Service Tax |

Service tax on Aggregators who are neither Provider nor Receiver

I recently received an email from Uber mentioning that the Finance Minister has recently asked the 'Aggregator' of taxi services to collect and remit Service tax on behalf of driver partners for fares on all rides. Consequently, they informed me that going forward (with effect from 1st March 2015), all taxi fares collected by the drivers ...

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Posted Under: Service Tax |

RCM on Manpower Supply Vis-à-vis Manpower Recruitment

Further recruitment of manpower is not the Supply of manpower, recruitment is altogether different from supply of manpower. On the basis of above information it can be assumed that only supply of manpower is covered under RCM and no reference regarding recruitment of manpower services is made for purposes of RCM....

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Posted Under: Service Tax |

Change in Service Tax Rate — Section 67A vs Rule 4 of Point of Taxation Rules

CA Manindar Kakarla Introduction: Finance Bill, 2015 has proposed to increase the service tax rate to 14% by amending Section 66B. The said bill has received President’s assent on 14/05/2015. The increased rate is going to be effective from 01.06.2015. As there is a change in rate of tax, the applicability of new service tax […]...

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Posted Under: Service Tax |

Taxability of newly taxable services from June 1, 2015

 CA Bimal Jain The Ministry of Finance, Department of Revenue vide Notification No. 14/2015-ST dated May 19, 2015 has notified that the following changes in relation to the Negative List of services contained under Section 66D of the Finance Act, 1994 (“the Finance Act”) shall be effective from June 1, 2015: ♠ Section 66D(f): Servi...

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Analysis of Service tax rate increase from 12.36% to 14%

Analysis of Service tax rate increase from 12.36% to 14% (Subsuming EC and SHEC) effective from 01.06.2015 After the Hon’ble President has given assent to the Finance Bill, 2015 on May 14, 2015, the Ministry of Finance, Department of Revenue vide Notification No. 14/2015-ST dated May 19, 2015 has notified increase in the rate of [&helli...

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Posted Under: Service Tax |

CBEC Press release regarding increase in Service Tax

In the Union Budget, 2015, an increase in the rate of Service Tax from 12% to 14% had been proposed from a date to be notified. The Finance Bill, 2015 has since been enacted and the Central Government has notified 1st June, 2015 as the date from which the rate of 14% would become applicable. The provisions levying Education Cess and Secon...

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Posted Under: Service Tax |

TDS on withdrawal from PF wef 1st June 2015

WSU/6(1)2011/IT/Vol-IV/5931 (21/05/2015)

The Finance Act, 2015 (20 of 2015) has Inserted a new section 192A regarding the payment of accumulated provident fund balance due to an employee. The Provision Shall Take effect from 01st June 2015. Income Tax should be deducted at source (TDS) at the following rates if at the time of payment of the accumulated PF balance is more than or...

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Pro-founding Impact of change in effective rate of SERVICE TAX

Before proceeding onto the areas wherein the change in rate of service tax will have its effect, let us have a brief on the Finance Bill 2015 which proposed for the said changes in regards to the subject matter. Clause 106 of the Finance Bill, 2015 and paragraph 3 of JS (TRU-II)D.O.F.No.334/5/2015-TRU, New Delhi, May […]...

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Posted Under: Service Tax |

Service tax rate increased to 14% wef 01.06.2015 & Other changes

After the Hon’ble President has given assent to the Finance Bill, 2015 on Thursday, May 14, 2015, the Ministry of Finance, Department of Revenue vide Notification No. 14/2015-ST dated May 19, 2015 has notified increase in the rate of Service tax from 12.36% to flat 14% (Subsuming Education Cess and Secondary & Higher Secondary Education...

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Significant changes under Customs wef 14.05.2015

Section 112: Penalty for improper importation of goods etc. Section 112 is being amended so as to substitute sub-clause (ii) of clause (b) to provide that penalty for improper importation of the dutiable goods other than the prohibited goods would be higher of the following:...

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Posted Under: Service Tax |

Significant changes under Central Excise wef 14.05.2015

Section 11A: Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded- a) Section 11A(5), 11A(6) and 11A(7) of the Excise Act contains the provisions relating to the category of cases where fraud, collusion, wilful mis-statement, etc., is involved but the details relating to the transactions ar...

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Posted Under: Service Tax |

Service Tax rate wef 01.06.2015 on Air Travel, Life Insurance, Money Changing & Lotteries Services

In respect of certain services like money changing service, service provided by air travel agent, insurance service and service provided by lottery distributor and selling agent, the service provider has been allowed to pay service tax at an alternative rate subject to the conditions as prescribed under rules 6(7), 6(7A), 6(7B) and 6(7C) ...

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14% Service Tax rates from 01st June 2015 & Changes in Cess

14% Service Tax from 01.06.2015- Section 66B of the Finance Act, 1994, prescribes the service tax rate. It has been amended by Section 108 of the Finance Act, 2015. The rate of Service Tax is being increased from 12% to 14% (including cesses). The increase in Service Tax rate will come into effect from 1st […]...

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Posted Under: Service Tax |

Service Tax on services provided by Govt not yet been notified

Yesterday CBEC has issued Notification no, 13/2015 to 17/2015 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...

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Posted Under: Service Tax |

Service Tax & CENVAT Changes w.e.f. 1st June’15

CA Sumit Grover Post enactment of Finance Act’15, trade was waiting for the Finance Ministry to notify the date for enhancement of service tax. Finally, the same has been notified as 1st June’15. Following is the gist of changes applicable w.e.f. the said date: 1) Abolition of EC & SHEC and effective rate of service [&hell...

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Posted Under: Service Tax |

Reg. Refund of Unutilized Cenvat Credit and on supply of manpower services

Notification No. 15/2015-Central Excise (N.T.) (19/05/2015)

Notification No. 15/2015-Central Excise (N.T.) Dated: May 19, 2015- Amends notification no. 12/2014 CE(NT) - Refund of Unutilized Cenvat Credit under Rule 5B of Cenvat Credit to the Service Provider - No refund in respect of supply of manpower for any purpose or security services w.e.f. 1-6-2015...

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Cenavt Credit reversal rate increased to 7% under rule 6 wef 01.06.2015

Notification No. 14/2015-Central Excise (N.T.) (19/05/2015)

Notification No. 14/2015-Central Excise (N.T.)), Dated: May 19, 2015 Amends Rule 6 of the Cenvat Credit Rules, 2004 - Rate of amount of reversal of Credit increased from 6% to 7% with effect from 1st of June, 2015....

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Service Tax Changes applicable from 01.06.2015

D.O.F.No.334/5/2015-TRU, (19/05/2015)

The Finance Bill, 2015, has received the assent of the Honorable President and has been notified. In the Budget, 2015, certain amendments in the Finance Act, 1994 have been incorporated through the Finance Act, 2015, which will come into effect from a date to be notified. In this regard, 1st June, 2015 is being notified as the date on whi...

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Service Tax Exemption on taxable services provided under Power System Development Fund Scheme of Ministry of Power

Notification No. 17/2015-Service Tax (19/05/2015)

NOTIFICATION No 17/2015-ST, Dated: May 19, 2015 Exempts taxable services provided under the Power System Development Fund Scheme of the Ministry of Power ...

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Amendment in Mega Exemption Notification effective from 1-6-2015

Notification No. 16/2015-Service Tax (19/05/2015)

NOTIFICATION No 16/2015-ST, Dated: May 19, 2015 Amendment in the Mega Exemption Notification relating to (i) Job work (alcoholic liquors for human consumption) and (ii) Services by way of right to admission shall be effective from 1-6-2015 ...

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Revised rates of compounded levy of service tax effective from 1.6.2015

Notification No. 15/2015-Service Tax (19/05/2015)

NOTIFICATION No 15/2015-ST, Dated: May 19, 2015 Revised rates of compounded levy of service tax under Rule 7, 7A, 7B and 7C shall be effective from 1.6.2015 Central Government hereby appoints the 1st day of June, 2015 as the date on which the provisions of sub-clauses (a), (b) and (c) and item (A) of sub-clause (d) of clause (ii) of sub-...

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CBEC Notifies change in service tax rates wef 01.06.2015

Notification No. 14/2015-Service Tax (19/05/2015)

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

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Service Tax- Removal of definition related to Chits

Notification No. 13/2015-Service Tax (19/05/2015)

NOTIFICATION No 13/2015-ST, Dated: May 19, 2015- Amends Abatement Notification no. 26/2012 ST dated 20-6-2012 - Removes the entry related to Chits in the definition part ...

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Download Finance Bill 2015 approved by President of India

Finance bill, 2015 has received the presidential assent on 14th May 2015 and has now become Finance Act, 2015 (NO. 20 OF 2015) . All the provisions which were due to be effective from the date the Finance Bill receives the assent of the President have now been implemented w.e.f. 14th May 2015....

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Posted Under: Service Tax |

Service Tax changes applicable with Finance Bill 2015 enactment

INANCE BILL 2015 RECEIVED PRESIDENT ASSENT Finance Bill, 2015 has got President Assent on 14th May, 2015 and has become Finance Act, 2015. As you know, Finance Bill 2015 has proposed lot of changes in Service tax provisions, applicable with effect from various dates. Now with the enactment of Finance Bill, 2015, following changes have [&h...

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Service tax changes effective from May 14, 2015 & from a date to be notified

We are summarizing hereunder the changes in Service tax that are effective from May 14, 2015 and the changes that will become effective only from the date to be notified later for easy digest:...

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14% Service Tax Rate to come into effect only from a date to be notified

The Hon’ble President has given assent to the Finance Bill, 2015 on Thursday, May 14, 2015. Accordingly, the Finance Bill, 2015 now becomes Finance Act (No.20), 2015. However, it is to be noted here that increase in the rate of Service tax from 12.36% to flat 14% (Subsuming Education cess and Secondary & Higher Secondary Education cess)...

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Tax Benefits Provided in Finance Act 2015

The Finance Act 2015 comes with many additional benefits for an individual assessee. Here an attempt is made to discuss all provision providing additional benefits to assessee by finance act. Particulars of Tax Benefits Exiting Provision Deduction / Benefit allowed Effective Date of Amendment Tax benefits under section 80C for the girl ch...

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Posted Under: Service Tax |

Finance Bill 2015 got President’s assent : Service Tax Changes applicable from 14th May, 2015

The Finance Bill 2015 presented by the Hon’ble Finance Minister in the Lok Sabha on 28th February, 2015 had proposed for various amendments in the provisions dealing with Service Tax under Finance Act, 1994 and Service Tax Rules, 1994. Also, the same had undergone various amendments post discussions in Lok Sabha vide Notice of Amendment...

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Posted Under: Service Tax |

Enactment of Finance Bill, 2015 and Changes in Service Tax

The Finance Bill, 2015 has been enacted as Finance Act, 2015 (Act No. 20 of 2015) on 14th May, 2015 after the assent of President of India. The provisions of Finance Act, 2015 shall therefore, become applicable w.e.f. 14.05.2015 save as otherwise provided in the Act. Such provisions shall be notified to be in force only from the notified ...

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Posted Under: Service Tax |

Service Tax Amendments applicable w.e.f 14.05.2015

On 14-05-2015, Finance Bill 2015 has become Finance Act 2015 as it received assent from the president. Let us analyse certain provisions which become applicable on enactment of the Finance Bill 2015...

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Posted Under: Service Tax |

Rajya Sabha passes Finance Bill, 2015

After being passed by the lower house of Parliament, the Rajya Sabha on Thursday, May 7, 2015 has passed the Finance Bill, 2015. The Bill is already been passed by Lok Sabha on 30.04.2015 and will  now needs presidents assent to become and act and effective. Also Read- Lok Sabha approves Finance bill 2015 with […]...

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Posted Under: Service Tax |

Adjustment of Central Excise Education CESS and Higher Education CESS as on 01.03.2015

The Hon’ble Finance Minister in the recent Union Budget 2015-16 announced in the floor of the Parliament that As part of the movement towards GST, I propose to subsume the Education Cess and the Secondary and Higher Education Cess in Central Excise duty....

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Posted Under: Service Tax |

Taxability of LPG Subsidy received by Individual

Provision in the Finance Bill, 2015, will not Affect the LPG Subsidy and Other Welfare Subsidies Received by Individuals Certain doubts have been raised in a section of the media about the applicability of the official amendment moved in the Finance Bill, 2015 in the Lok Sabha on 30th April, 2015 with respect to definition […]...

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Posted Under: Service Tax |

Income Tax Changes made in Finance Bill,2015 by Lok Sabha

Finance Bill, 2015 was passed in Lok Sabha on 30.04.2015 with certain amendments via notice of amendment dated 30.04.2015. In this article I have covered some of the amendment in Provisions related to Direct Taxes. Read- Lok Sabha approves Finance bill 2015 ...

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Utilization of CESS against payment of excise duty: Whether industry has been fooled?

 In a significant move towards Goods & Service Tax (GST), the Central Government had issued Notification No. 14/2015-CE and 15/2015-CE dated 01-03-2015 (as part of the Union Budget – 2015 Notifications) whereby it exempted all goods falling under First Schedule of the Central Excise Tariff Act, 1985 (CETA) from the levy of Educatio...

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Posted Under: Service Tax |

PM Letter to Farmers on Budget 2015

India is a country of farmers. As a nation, our roots lie in our villages and farms, which have been providing sustenance to our people for generations. Our festivals, fairs and functions are all based on our agricultural heritage and background. You are our Annadaata, for which we are eternally grateful and indebted to you....

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Posted Under: Service Tax |

PM Letter to youth of the country on Budget 2015

Prime Minister 31 March 2015 My Dear Young friends, With 65% of our population under the age of 35, India is the youngest nation in the world. It is built on your toil and enterprise. You are our competitive advantage- our biggest strength. In your success, lies the success of the nation. Yet, not enough […]...

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Posted Under: Service Tax |

PM Letter to Industrial Workers on Budget 2015

A Shrama Yogi like you fulfills many of our nation1s needs. You build India through your sweat and toil. You support the economy with much needed muscle and skills. The products that we use everyday are a result of your labour. Your importance in our society can thus not be emphasized enough....

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Posted Under: Service Tax |

PM Letter to Small Businessmen on Budget 2015

I am aware of how difficult it is for you to get loans, and the high interest rates you have to pay for the same.l can feel your distress when the existing banking system is not of much help. We are thus setting up the MUDRA (Micro Units Development Refinance Agency) Bank to ensure that you get loans at an affordable rate, with minimal pa...

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Posted Under: Service Tax |

PM Letter to Senior Citizens on Budget 2015

Many of you belong to that privileged generation which has had the honour of contributing to both India's independence, as well as its consequent nation building. We are what we are today because of you. And for this, we are all deeply proud and eternally indebted to you....

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Posted Under: Service Tax |

Lok Sabha approves Finance bill 2015 with amendments

Finance Mister Arun Jaitely has Presented on Thursday 30.04.2015 in Lok Sabha the Finance Bill 2015 for Approval and same been approved by Lok Sabha. ...

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Posted Under: Service Tax |

Budget 2015- Changes in Service Tax, Excise & Custom Duty as passed in Lok Sabha

D.O.F.No. 334/5/2015-TRU (30/04/2015)

While replying to the discussions on the Finance Bill, 2015 in Lok Sabha today, Finance Minister has announced certain further changes in Central Excise and Customs duty rates. Notifications No.23 to No.27/2015-Central Excise and notifications No. 28 to No.30/2015- Customs, all dated 30th April, 2015 have been issued to give effect to the...

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GST bill to be taken up in Lok Sabha next week & Finance Bill on 30.04.2015

The Constitution (122 Amendment) Bill in respect of GST to be taken up in Lok Sabha next week Finance Bill to be taken up on Thursday Further to the suggestions from the Members of Lok Sabha, the Government has agreed to extend the ongoing discussion on Demands for Grants of various ministries by one day […]...

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Posted Under: Service Tax |

4 Practical Issues in Additional Depreciation & solutions

Issue No.1:- Weather year of acquisition and year of installation should be same or different for claiming Additional Depreciation? Issue No.2:- If Acquisition And Installation Done In Year 1 and put to use in year 2, then Additional Depreciation will be allowed in year 1 or in year 2 or it will lapse?...

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Posted Under: Service Tax |

Service Tax Abatement Rate Chart from 01.04.2015

CA Sandeep Kanoi Abatement in Service Tax was First Introduced Vide Principal Notification No. 26/2012-Service Tax, dated 20th June 2012 and subsequently been amended vide Notification No. 2/2013 – Service Tax, dated the 1st March, 2013, Notification No. 9/2013 – Service Tax, Dated: May 8, 2013, Notification No. 08/2014 – Service Ta...

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Posted Under: Service Tax |

Reverse and Partial Reverse Mechanism Chart from 01.04.2015

Reverse and Partial Reverse Mechanism Chart with effect from 01.04.2015 and The extent of service tax payable thereon by the person who provides the service and any other person liable for paying service tax for the taxable services ...

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New section 9A-Certain activities not to constitute business connection in India

The foreign portfolio investors (referred as foreign institutional investors in the Act) face a difficulty in characterization of their income arising from transaction in securities as to whether it is capital gain or business income. Further, the fund manager managing the funds of such investor remains outside India under the apprehensio...

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Posted Under: Service Tax |

Service Tax Exemptions Withdrawn From 1st April, 2015

(a) Withdrawal of certain exemptions under Notification No. 25/2012-ST. (i) Construction services provided to Government etc (Entry No. 12)- Clauses (a), (c) and (f) shall stand omitted. Construction, repair etc of the following services provided to the Government, a local authority, or a governmental authority are now taxable:...

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Posted Under: Service Tax |

New rate of Service tax to come into effect only from a date to be notified after enactment of Finance Bill, 2015

CA Bimal Jain The Union Budget, 2015 has proposed an increase in the rate of Service tax from 12.36% to flat 14% with abolishment of Education cess and Secondary & Higher Secondary Education cess. Further pursuing with Mr. Narendra Modi’s Dream of Swachh Bharat, a new Chapter VI has been inserted in the Finance Bill, 2015 […...

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Posted Under: Service Tax |

Amendment to Rule 11 of Central Excise Rules, 2002 wef 01.03.2015

The supplier of input sends the materials to any person (consignee) directly as per the instruction of a registered dealer, the excise invoice shall contain the details of the registered dealer as buyer and details of the person to whom the materials are sent as consignee. ...

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Posted Under: Service Tax |

CBDT Notifies Revised Transport allowance exemption limit

Notification No. 39/2015 - Income Tax (13/04/2015)

Notification No. 39/2015 - Income Tax CBDT has vide Notification No. 39/2015 increased Transport allowance exemption limit for employees from Rs. 800 to Rs. 1,600 per month. In case the employee is blind or orthopaedically handicapped with disability of lower extremities the limit is increased from Rs. 1600 to Rs. 3200/- per Month. ...

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CBEC clarifies on Applicability of 14% Service Tax Rate

Circular No. 183/02/2015-ST (10/04/2015)

Circular No. 183/02 /2015-ST Dated 10th April, 2015 Doubts have been expressed in various forums regarding the proposed increase in the rate of service tax from 12.36% (including education cesses) to 14% on the value of taxable service....

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Service Tax Rates and Changes effective from 1st April 2015

1) Rate of Service Tax Finance Bill, 2015 has proposed increase in rate of Service Tax from 12.36% to 14%. News reports are being broadcasted and published stating that the rate has been increased from 01st April 2015, are incorrect. These reports have caused wide spread confusion amongst all. In order to clear the confusion, […]...

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Ready Recknor Service Tax Changes effective from 01-04-2015

In 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 ....

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Doubtful fate of refund on Deemed exports

The Hon’ble Prime Minister, in order to encourage Companies to manufacture their products in India has launched initiative named ‘Make in India’ on September 25, 2014. This had not only helped Indian manufacturers to enhance their capital base as there are proposed relaxations in the policy of Foreign Direct Investment but also prod...

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Posted Under: Service Tax |

Aftermath of non-excisable goods being equated to exempted goods/ final products for Rule 6 of Cenvat Credit Rules, 2004

Vide Notification No. 6/2015-CE(NT) dated March 1, 2015, Explanation-I to Rule 6(1) of the Credit Rules have been inserted to state that w.e.f March 1, 2015, for the purpose of this Rule, exempted goods and final products shall include non-excisable goods cleared for a consideration from the factory:...

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Posted Under: Service Tax |

Interest on Wrong availment of Cenvat Credit but not utilised – a tale of never ending litigation and interpretational issues

Over the years, Rule 14 of the Credit Rules has always been the matter of concern/ litigation for both the Revenue and the Assessee. Even the Courts have taken divergent views while interpreting the provisions of Rule 14 of the Credit Rules. Before we proceed to understand the changes made in Rule 14 of the […]...

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Posted Under: Service Tax |

Increase in time limit for availing Cenvat credit on Input services and Inputs – Whether applicable on invoices issued prior to March 1, 2015?

Till September 1, 2014, there was no time limit prescribed under the Credit Rules for availment of Cenvat credit. Various Courts have held that in the absence of any time limit prescribed under the Credit Rules, Cenvat credit can be taken at any time even in some cases, Assessees have been allowed to avail Cenvat […]...

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Budget, 2015: Changes in Cenvat Credit Rules, 2004 and its impact

In the Union Budget, 2015 presented by the Hon’ble Finance Minister Shri Arun Jaitley on February 28, 2015, Saturday, numerous changes in the Indirect taxes, have been introduced to combat/ surpass the challenges encountered in the way of progress of continued growth and to pave way for smooth implementation of Goods and Services tax (G...

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Aggregator’s Services under Service Tax Net

The aggregators who were till now not specifically covered under the Service Tax net on strict interpretation of law and could not catch the attention of revenue authorities came under the radar of one and all in Indian regulatory world once the app based cab services received the attention after Uber fiasco. ...

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Posted Under: Service Tax |

14% Service Tax rate not with effect from 1st April 2015

It has come to the notice of this office that though the new Service Tax rate of 14% has not yet been given effect, some of the service tax providers have started billing & recovering the amount of Service Tax at the rate of 14% from their customers. This practice is not only completely illegal but amounts to collecting consideration from...

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Posted Under: Service Tax |

Income tax Calculator for Financial year 2015-16

Please find attached the Excel file containing Income Tax calculator as modified by Finance Bill 2015 presented on 28th February 2015. The above Income Tax calculator contains the rate of tax for last 19 financial year (i.e Financial year 1997-98 to 2015-16) and income tax calculator for last 9 years (i.e Financial year 2006-07 to 2015-16...

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Service Tax Amendments Applicable w.e.f. 01st April 2015

The Finance Bill, 2015 has proposed Lot of changes in Service tax provisions. These changes will be coming into effect on various dates. Based on date of applicability of provisions, the various changes can be categorized as follows: (i) Changes coming into effect immediately w.e.f. the 1st day of March, 2015; (ii) Changes coming into [&h...

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Changes to become effective in SERVICE TAX w.e.f 1st April 2015

Following Services which are currently taxable, to become exempted- 1. Transport of pulses and rice by rail, vessels or road in a goods carriage. 2. Transportation of patient in an ambulance. 3. Life Insurance services provided under the scheme of Varishtha Pension Bima Yojna. Services of Common Effluent Treatment Plant Operator for ...

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New Rate of Service Tax and Cess on Services

Clause 106 of the Finance Bill, 2015 seeks to amend section 66B so as to increase the Service Tax from 12 to 14 percent. Further, Clauses 179 and 187 respectively of the Finance Bill, 2015 provide that – Section 95 of the Finance Act, 2004 levying education cess, and Section 140 of the Finance Act, 2007 levying SHE cess...

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Budget 2015- Taxability of Newly Made ‘Taxable Services’

Finance Bill, 2015 vide Clause 107 has proposed certain amendments in the Negative List of services given under Section 66D of the Finance Act thereby removing certain services from the Negative List. Now, in this case, the issue may crop up that the services rendered prior to the date of notification are exigible to Service […]...

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Posted Under: Service Tax |

Hike In Rate Of Service Tax – Open Issues

The Union Budget, 2015 has proposed an increase in the rate of Service tax from 12.36% to flat 14% with abolishment of Education cess and Secondary & Higher Secondary Education cess. Further pursuing with Mr. Narendra Modi’s Dream of Swachh Bharat, a new Chapter VI has been inserted in the Finance Bill, 2015 that contains a [&helli...

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Impact of Service tax changes on Manpower Supply & Security Services

Impact of Change of Service tax liability structure from partial reverse charge to full reverse charge on manpower SUPPLY AND SECURITY services in transition period As discussed Supra, Notification No. 30/2012-ST dated 20-06-2012 has been amended vide Notification No. 7/2015-ST dated 01-03-2015, there by shifting the Supply of Manpower an...

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Service tax Changes effective from date to be Notified after enactment of Finance Bill, 2015

This Article Covers the following Topics- 1. Increase in rate of Service tax 2. Swachh Bharat Cess – Enabling Provision 3. Changes in relation to the Negative List – Section 66D of the Finance Act, 1994 4. Various other Sections under the Finance Act, 1994 5. Service Tax Rules, 1994 amended vide Notification No. 5/2015-ST […]...

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Service Tax Changes Effective from April 1, 2015

Article Covers the following Topics → Exemption widened on Service provided by transport of export goods by road from the place of removal to a land customs station (LCS) vide Notification No. 4/2015-ST dated 1-03-2015 (Effective From 1-04-2015) →  Service Tax Rules, 1994 amended vide Notification No. 5/2015-ST dated 01-03-2015 → C...

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Service Tax Changes Effective from March 1, 2015

In the Union Budget, 2015 presented by the Hon’ble Finance Minister Shri. Arun Jaitley on February 28, 2015, Saturday, numerous changes in Direct and Indirect taxes, have been introduced to address the need of hour, the continued growth to contest the challenges paved in the way of progress. Changes in the Chapter V of the […]...

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Decoding Rule 6 of Cenvat Credit Rules, 2004

THUMB RULE to avail CENVAT Credit is that it can be availed on those eligible Inputs, Capital goods or Input Services which have been utilized for providing taxable services or manufacturing dutiable goods except the cases where it is restricted under any notification. ...

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Posted Under: Service Tax |

An Overview to Maharashtra Budget 2015-16

Finance Minister Shri.Sudhir Mungantiwar of BJP government Maharashtra has presented his very first budget on Wednesday, 18’Th March 2015.State government of Maharashtra has presented budget on the lines of the Central government’s Budget. Following are some key highlights of the Budget 2015-16:...

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Posted Under: Service Tax |

Maharashtra Budget, 2015- Key Indirect tax Amendments

1. Local Body Tax- Local Body tax is proposed to be abolished from 1st August, 2015 and the loss of revenue due to the abolishment shall be compensated by enhancing the rate of Value Added Tax. 2. Entry Tax- Entry Tax at 5% is proposed to be levied on import of Long Steel....

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Posted Under: Service Tax |

Service tax on distributor’s commission by Mutual Fund Industry – What happens to commission accrued prior April 2015 but paid post April 2015

With the introduction of the Negative List of Services, all eyes, including those of the taxmen and the taxpayers were looking forward to a simplified tax regime. To add to the work of the taxmen and the worries of the taxpayers, the Government had introduced the reverse charge mechanism which has been made applicable to certain specified...

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Posted Under: Service Tax |

PAN mandatory for service tax registration

Henceforth, registration shall mandatorily require that the PAN number of the proprietor or the legal entity being registered be quoted with the exception of the Government Departments for whom this requirement shall be non-mandatory. Applicants, who are not Government Department, shall not be granted registration in the absence of PAN nu...

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Posted Under: Service Tax |

Budget 2015 – Key Anomalies in Service Tax and CENVAT

The much awaited Budget 2015 has introduced numerous amendments in Service Tax and CENVAT Credit Rules, 2004 (CCR). Few amendments (such as rate increase in service tax, subsuming cess etc) have been made in order to align the existing laws with proposed GST. In this article, we will discuss key issues and anomaly in the Budget 2015 provi...

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Budget 2015- Service Tax Payable on Reimbursement of Expenses

In the budget Explanation (a) to Section 67 is amended to specifically include ‘any reimbursable expenditure or cost incurred and charged by the service provider’ in the definition of the term ‘Consideration’ in order to overcome the Delhi High Court’s ruling in the case of Intercontinental Consultants and Technocrats Private Li...

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Service Tax- Penal provisions simplified, still grey areas left out

As all are aware, the service tax is here for the past 21 years from Sept, 1994.The original provisions of the law contained in the Finance Act, 1994 have been subjected to various changes almost every year. In the proposed changes to Finance Act, 1994 pertaining to service tax, As per the Finance Bill, 2015, ...

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Posted Under: Service Tax |

Karnataka State Budget 2015- Tax and Stamp Duty Changes

♠ As the Central Government of India had indicated that GST could be implemented from 01.04.2016. State Government to take necessary steps to prepare Trade and Industry and department for smooth transition to Goods and Services Tax (GST) System. Relief under VAT: ♠Increase in registration limit from Rs.7.5 lakhs of annual turnover to ...

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Posted Under: Service Tax |

Important Service Tax Amendments by Union Budget 2015

The service tax rate is being increased from 12.36% to 14%. The ‘Education Cess’ and ‘Secondary and Higher Education Cess’ shall be subsumed in the new service tax rate. The revised rate shall come into effect from a date to be notified....

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