{"id":154,"date":"2015-06-24T13:07:02","date_gmt":"2015-06-24T13:07:02","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=154"},"modified":"2021-11-16T17:44:14","modified_gmt":"2021-11-16T12:14:14","slug":"service-tax-changes-applicable-from-1-4-2015","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/service-tax-changes-applicable-from-1-4-2015\/","title":{"rendered":"Corporate and professional update"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d4a52a103d0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d4a52a103d0\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/service-tax-changes-applicable-from-1-4-2015\/#Service_Tax_changes_applicable_from_142015\" title=\"Service Tax changes applicable from\u00a01.4.2015\">Service Tax changes applicable from\u00a01.4.2015<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/service-tax-changes-applicable-from-1-4-2015\/#_New_Exemptions_introduced\" title=\"\u00a0 New Exemptions introduced\">\u00a0 New Exemptions introduced<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/service-tax-changes-applicable-from-1-4-2015\/#Reverse_Charge_Mechanism\" title=\"Reverse Charge Mechanism\">Reverse Charge Mechanism<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/service-tax-changes-applicable-from-1-4-2015\/#_Rationalisation_of_Abatement\" title=\"\u00a0Rationalisation of Abatement\">\u00a0Rationalisation of Abatement<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled12A.png\" rel=\"attachment wp-att-1549\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1549\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled12A-300x171.png\" alt=\"Untitled12A\" width=\"840\" height=\"479\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled12A-300x171.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled12A.png 597w\" sizes=\"(max-width: 840px) 100vw, 840px\" \/><\/a><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Service_Tax_changes_applicable_from_142015\"><\/span><span style=\"color: #000080;\"><strong><a href=\"https:\/\/www.caindelhiindia.com\/blog\/recent-amendments-in-service-tax\/\"><span style=\"color: #0000ff;\">Service Tax <\/span><\/a><span style=\"color: #0000ff;\">changes applicable from\u00a01.4.2015<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Please ensure that Rate of Service tax has not changed \u2013 it will remain to be 12.36% and NOT 14%, until notification issued.<\/p>\n<p style=\"text-align: justify;\">A) Exemptions withdrawn<\/p>\n<p style=\"text-align: justify;\">B)\u00a0Goods Transport services<\/p>\n<p style=\"text-align: justify;\">(a)\u00a0<strong><span style=\"text-decoration: underline;\">by rail or water<\/span><\/strong>\u00a0in respect of following products which were exempt earlier will now be taxable: Fruits, Vegetables &amp; Eggs<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Hence, Goods transport services by rail or water will not be taxable in case of Milk, Salt and food grain including flours, pulses and rice.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">(b)\u00a0<span style=\"color: #3366ff;\"><strong><span style=\"text-decoration: underline;\">by road<\/span><\/strong><\/span>\u00a0\u00a0in respect of following products which were exempt earlier will now be taxable: Tea, coffee, Jaggery, Sugar, Milk Products and edible oil<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Hence, GTA (road) will not be taxable in case of Milk, Salt and food grain including flours, pulses and rice ONLY \u2013 rest all will be taxable.<\/strong><\/span><\/p>\n<ol style=\"text-align: justify;\" start=\"2\">\n<li>Services provided by a mutual fund agent to a mutual fund or assets management company, distributor to a mutual fund or AMC, selling or marketing agent of lottery ticket to a distributor.<\/li>\n<li>Service Tax on these services shall be levied on reverse charge basis.<\/li>\n<\/ol>\n<ol style=\"text-align: justify;\" start=\"3\">\n<li>Following services provided to government, local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of:<\/li>\n<li>a civil structure meant for use other than for commerce, industry, etc.<br \/>\nii. a structure meant predominantly for use as an educational, clinical, or an art or cultural establishment.<br \/>\niii. a residential complex predominantly meant for self-use or the use of their employees.<\/li>\n<\/ol>\n<ol style=\"text-align: justify;\" start=\"4\">\n<li>Exemption to services provided by way of construction, erection, commissioning or installation of original works pertaining to an airport or port<\/li>\n<li>Exemption to services provided by a performing artist in folk or classical art form of (i) music, or (ii) dance, or (iii) theater, will be limited only to such cases where amount charged is up to Rs. 1,00,000 for a performance. It is further clarified that the exemption shall not apply if services provided by artist as a brand ambassador;<\/li>\n<li>Departmentally run public telephone, Guaranteed public telephone operating only local calls; Service by way of making telephone calls from free telephone at airport and hospital where no bill is issued.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"_New_Exemptions_introduced\"><\/span><strong><span style=\"color: #3366ff;\">\u00a0 New Exemptions introduced<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol style=\"text-align: justify;\">\n<li>Goods transport agency service provided for transport of export goods by road from the place of removal to an inland container depot, a container freight station, a port or airport is exempt from Service Tax vide notification No. 31\/12-ST dated 20.6.2012.<\/li>\n<li>Scope of this exemption is being\u00a0<span style=\"color: #3366ff;\"><strong>widened to exempt such services when provided for transport of export goods by road from the place of removal to a land customs station (LCS)<\/strong>.<\/span><\/li>\n<li>Any service provided by way of transportation of a patient to and from a clinical establishment by a clinical establishment is exempt from <a href=\"https:\/\/carajput.com\/services-tax-registration.php\">Service Tax<\/a>. The scope of this exemption is being widened to include all ambulance services.<br \/>\nLife insurance service provided by way of Varishtha Pension Bima Yojna is being exempted.<\/li>\n<li>Service provided by a Common Effluent Treatment Plant operator for treatment of effluent is being exempted.<\/li>\n<li>Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables is being exempted.<\/li>\n<li>Service provided by way of admission to a museum, zoo, national park, wild life sanctuary and a tiger reserve is being exempted. These services when provided by the Government or local authority are already covered by the Negative List.<\/li>\n<li>Service provided by way of exhibition of movie by the exhibitor (theatre owner) to the distributor or an association of persons consisting of such exhibitor as one of it\u2019s members is being exempted.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"Reverse_Charge_Mechanism\"><\/span><span style=\"color: #3366ff;\"><strong>Reverse Charge Mechanism<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol style=\"text-align: justify;\">\n<li>Manpower supply and security services when provided by an individual, HUF, or partnership firm to a body corporate are being brought to full reverse charge.\u00a0Presently, these are taxed under partial reverse charge mechanism;<\/li>\n<li>Services provided by mutual fund agents, mutual fund distributors and agents of lottery distributor are being brought under reverse charge consequent to withdrawal of the exemption on such services.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"_Rationalisation_of_Abatement\"><\/span><strong style=\"color: #3366ff;\">\u00a0Rationalisation of Abatement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #3366ff;\"><strong style=\"line-height: 1.5; text-align: justify;\">\u00a0 \u00a0 Transport for Goods<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">At present, <a href=\"https:\/\/carajput.com\/services-tax-registration.php\">service tax<\/a> is payable on 30% of the value of rail transport for goods and passengers, 25% of the value of goods transport by road provided by a goods transport agency and 40% for goods transport by vessels. The conditions also vary.<\/p>\n<p style=\"text-align: justify;\">A uniform abatement is now being prescribed for transport by rail, road and vessel. Service Tax shall be payable on 30% of the value of such services subject to a uniform condition of non-availment of CENVAT Credit on inputs, capital goods and input services.<\/p>\n<p style=\"text-align: justify;\"><strong style=\"color: #3366ff; line-height: 1.5;\">Air Transport of Passengers<\/strong><\/p>\n<p style=\"text-align: justify;\">At present, Service Tax is payable on 40% of the value of air transport of passenger for economy as well as higher classes, e.g. business class. The abatement for classes other than economy is being reduced and service tax would be payable on 60% of the value of such higher classes.<\/p>\n<p style=\"text-align: justify;\">Abatement is being withdrawn from services provided in relation to chit fund business consequently Service Tax shall be paid on full consideration received by way of fee, commission or any such amount.<\/p>\n<p style=\"text-align: justify;\">The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional\u00a0endeavors. For query or help, contact: <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0or call at 9555555480<\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>Service Tax changes applicable from\u00a01.4.2015 Please ensure that Rate of Service tax has not changed \u2013 it will remain to be 12.36% and NOT 14%, until notification issued. A) Exemptions withdrawn B)\u00a0Goods Transport services (a)\u00a0by rail or water\u00a0in respect of following products which were exempt earlier will now be taxable: Fruits, Vegetables &amp; Eggs Hence, &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172,4],"tags":[2774,2773,2771,2770,2769,2772],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/154"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=154"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/154\/revisions"}],"predecessor-version":[{"id":18943,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/154\/revisions\/18943"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}