{"id":157,"date":"2015-06-24T13:09:20","date_gmt":"2015-06-24T13:09:20","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=157"},"modified":"2021-12-13T16:00:35","modified_gmt":"2021-12-13T10:30:35","slug":"service-tax-amendments","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/service-tax-amendments\/","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-69d4bf8b1e63f\" 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-69d4bf8b1e63f\"  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-amendments\/#CORPORATE_AND_PROFESSIONAL_UPDATE\" title=\"CORPORATE AND PROFESSIONAL UPDATE\">CORPORATE AND PROFESSIONAL UPDATE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/service-tax-amendments\/#SERVICE_TAX_AMENDMENTS\" title=\"SERVICE TAX AMENDMENTS\">SERVICE TAX AMENDMENTS<\/a><\/li><\/ul><\/nav><\/div>\n<h2><\/h2>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-19730\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/06\/corp.jpg\" alt=\"\" width=\"1065\" height=\"687\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE\"><\/span>CORPORATE AND PROFESSIONAL UPDATE<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"SERVICE_TAX_AMENDMENTS\"><\/span><span style=\"color: #000080;\"><strong><em><a style=\"color: #000080;\" href=\"https:\/\/www.caindelhiindia.com\/blog\/recent-amendments-in-service-tax\/\">SERVICE TAX<\/a> AMENDMENTS<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #3366ff;\"><strong>Clarification about the Rate of Service Tax<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The rate of Service Tax will continue at @12.36% until the new rate is notified. The increase in service tax rate from 12.36% to 14% is yet to be notified.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\">\u00a0<strong>Service Tax amendments are applicable from 01 April 2015.<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>\u00a0New Exemptions provided<\/strong><\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li>Services provided by way of transportation of a patient in an ambulance would now be exempt from Service Tax. The scope of this exemption is being widened to include all ambulance services in addition to health care services.<\/li>\n<li>Life insurance services provided under the Varishtha Pension Bima Yojna scheme would now be exempted.<\/li>\n<li>The scope of exemption on transportation of goods by road has been extended from the place of removal to an inland container depot, a container freight station, a port, airport or\u00a0<span style=\"color: #ff6600;\"><strong>Land Customs Station\u00a0<\/strong><\/span>is exempt from Service Tax vide notification No. 31\/12-ST dated 20\u00a0June\u00a02012.<\/li>\n<li>Service provided by a Common Effluent Treatment Plant operator for treatment of effluent would now be exempted.<\/li>\n<li>Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables would now be exempted.<\/li>\n<li>Service provided by way of admission to a museum, zoo, national park, wildlife sanctuary, and a tiger reserve would now be exempted.<\/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 its members would now be exempted.<\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Withdrawal of Exemptions<\/strong><\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li>The following services are 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<\/ol>\n<ol style=\"text-align: justify;\">\n<li>A civil structure meant for use other than for commerce, industry, etc.<\/li>\n<li>A structure meant predominantly for use as an educational, clinical, or art, or cultural establishment.<\/li>\n<\/ol>\n<ul style=\"text-align: justify;\">\n<li>A residential complex predominantly meant for self-use or the use of its employees would be taxable.<\/li>\n<\/ul>\n<ol style=\"text-align: justify;\">\n<li>Services provided by way of construction, erection, commissioning or installation of original works pertaining to an airport or port would now be taxable.<\/li>\n<\/ol>\n<ol style=\"text-align: justify;\">\n<li>Exemption to services provided by a performing artist in folk or classical art form<\/li>\n<li>music, or<\/li>\n<li>Dance, or<\/li>\n<li>Theater,<\/li>\n<\/ol>\n<p style=\"text-align: justify;\">Will be limited only to such cases where the amount charged is an option. 1, 00,000 for performance would be taxable. It is further clarified that the exemption shall not apply if services are provided by an artist as a brand ambassador;<\/p>\n<ol style=\"text-align: justify;\">\n<li>Goods Transport services by rail or water in respect of following products which were exempt earlier will now be taxable with regards to fruits, vegetables, and eggs. Hence, Goods transport services by rail or water will not be taxable in the case of Milk, Salt, and food grain including flours, pulses, and rice.<\/li>\n<li>Goods transportation\u00a0<span style=\"text-decoration: underline;\">by road in<\/span> respect of following products which were exempt earlier will now be taxable with regards to tea, coffee, Jaggery, Sugar, Milk Products and edible oil Hence, GTA (road) will not be taxable in case of Milk, Salt and food grain including flours, pulses, and rice.<\/li>\n<li>The following services provided would be taxable:<\/li>\n<\/ol>\n<ul style=\"text-align: justify;\">\n<li>distributor to a mutual fund or AMC,<\/li>\n<li>a mutual fund agent to a mutual fund or assets management company,<\/li>\n<li>Selling or marketing agent of lottery ticket to a distributor.<\/li>\n<li>These services are now covered under a reverse charge basis.<\/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 would be taxable.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Changes in Abatement<\/strong><\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li>Currently, the Service Tax is payable on 70% of the fees, commission or any such amount in case of Chit Funds.\u00a0 The abatement is being withdrawn from services provided in relation to the chit fund business.<\/li>\n<li>The service tax abatement is several transportation services that have been changed to bring them to the same rate of service tax and related conditions.\u00a0 In the table below, we have summarized the old and new rates of service tax:<\/li>\n<\/ol>\n<table width=\"627\">\n<tbody>\n<tr>\n<td width=\"202\"><span style=\"color: #3366ff;\"><strong>Services<\/strong><\/span><\/td>\n<td width=\"224\"><span style=\"color: #3366ff;\"><strong>Old Rate and Conditions<\/strong><\/span><\/td>\n<td width=\"201\"><span style=\"color: #3366ff;\"><strong>New Rate and Conditions<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"202\">Goods Transport Agency<\/td>\n<td width=\"224\">25% and no cenvat credit shall be allowed on inputs, capital goods, and input services<\/td>\n<td width=\"201\">30% and no cenvat credit shall be allowed on inputs, capital goods, and input services<\/td>\n<\/tr>\n<tr>\n<td width=\"202\">Rail Transportation of Goods<\/td>\n<td width=\"224\">30% and no further conditions<\/td>\n<td width=\"201\">Same as above<\/td>\n<\/tr>\n<tr>\n<td width=\"202\">Rail transport of Passengers<\/td>\n<td width=\"224\">40% and no cenvat credit shall be allowed on inputs and capital goods<\/td>\n<td width=\"201\">Same as above<\/td>\n<\/tr>\n<tr>\n<td width=\"202\">Transportation of goods by Vessel<\/td>\n<td width=\"224\">50% and no cenvat credit shall be allowed on inputs, capital goods, and input services<\/td>\n<td width=\"201\">Same as above<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ol style=\"text-align: justify;\">\n<li>Currently, the <a href=\"https:\/\/carajput.com\/services-tax-registration.php\">Service Tax<\/a> is payable on 40% of the value of air transport of passengers irrespective of the class.\u00a0 The service tax would now be payable on 60% of the value in case of classes above economy class.<\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>Reverse Charge Mechanism<\/strong><\/span><\/p>\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. Currently, the service receiver pays 75% of the service tax due, and the balance is paid by the service provider.<\/li>\n<li>The following services are brought under reverse charge mechanism:<\/li>\n<\/ol>\n<p style=\"text-align: justify;\">\u00a0\u00a0\u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0Mutual fund agents,<\/p>\n<p style=\"text-align: justify;\">\u00a0\u00a0\u00a0 \u00a0 \u00a0 \u00a0\u00a0 \u00a0Mutual fund distributors and<\/p>\n<p style=\"text-align: justify;\">\u00a0\u00a0 \u00a0\u00a0 \u00a0 \u00a0\u00a0 \u00a0Agents of lottery distributor.<\/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>CORPORATE AND PROFESSIONAL UPDATE SERVICE TAX AMENDMENTS Clarification about the Rate of Service Tax The rate of Service Tax will continue at @12.36% until the new rate is notified. The increase in service tax rate from 12.36% to 14% is yet to be notified. \u00a0Service Tax amendments are applicable from 01 April 2015. \u00a0New Exemptions &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150,172,9,4],"tags":[2768,2767,2766,2765,503,2875],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/157"}],"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=157"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/157\/revisions"}],"predecessor-version":[{"id":19736,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/157\/revisions\/19736"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}