The
Central Board of Excise & Custom (CBEC) has notified that the following
provisions will come into effect from 1st June 2015.
- Abolition of EC & SHEC,
and effective rate of service tax to be enhanced from 12.36% to 14%.
- Rule 6(3) of the CENVAT
Credit Rules deals with manufacturers
of goods or providers of output service, opting not to maintain separate
accounts. Now, reversal of CENVAT under
the said sub-rule shall be 6% of exempted goods and 7% of exempted services.
- Exemption of service tax on
entry in a recognized sporting event, circus, cinematographic film, dance or
theatrical performance including drama or ballet, award function, concerts,
pageants, musical performances or any sporting events other than recognized
sporting event,
wherein entry fees is up to Rs. 500/person.
- Levy of service tax on job
work processes for production of alcoholic liquor for human consumption
- For
services such as those provided by money changers, air travel agents, insurance
providers, lottery distributor and selling agents, the service provider is
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) of the Service Tax Rules,
1994. Consequent to the upward revision in Service Tax rate, the said
alternative rates shall also be revised proportionately as follows.
Booking of tickets for travel by air by
an air travel agent
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New Service Tax Rate from 1st June 2015
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Rates up to
31.05.2015
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1. Domestic Booking
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0.70% of basic fare
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0.60% of basic fare
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2. International Booking
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1.4% of basic fare
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1.2%. of basic fare
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“basic fare” means that part of the air fare on which
commission is paid to the air travel agent by the airline.
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Insurer carrying life insurance business
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New Service Tax Rate from 1st June 2015
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Rates up to 31.05.2015
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1. 1st year
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3.50% of Premium Charged
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3% of Premium Charged
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2. Subsequent Years
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1.75% of Premium Charged
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1.50% of Premium Charged
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Sale or purchase of Foreign Exchange, including
money changing
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Gross Amount of Currency Exchanged
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New Service Tax Rate wef 1st June 2015
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Old Rate
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1. Up to Rs. 1,00,000
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0.14% of gross amount of currency exchanged(min.Rs.35)
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0.12% of gross amount of currency exchanged(min.Rs.30)
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2. 1,00,000-10,00,000
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Rs.140 + 0.07% of gross amount exceeding 1 lakh
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Rs.120 + 0.06% of gross amount exceeding 1 lakh
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3. exceeding 10,00,000
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Rs.770 + 0.014% of gross amount exceeding 10 lakhs(max. Rs.7000)
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Rs.660 + 0.012% of gross amount exceeding 10 lakhs(max. Rs.6000)
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Taxable service of promotion, marketing,
organising or in any other manner assisting in organising lottery
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Guaranteed Prize Payout
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New Service Tax Rate wef 1st June 2015
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Service Tax till 31.05.15
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Prize payout More than 80%
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Rs. 8,200/- on every Rs. 10 Lacs or a part of Rs. 10 Lacs of aggregate
face value of lottery tickets printed by the organising State for
a draw
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Rs. 7,000/- on every Rs. 10 Lac or part of Rs. 10 Lac of aggregate
face value of lottery tickets printed by the organising State for a
draw
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Prize payout Less than 80%
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Rs. 12,800/- on every Rs. 10 Lacs or part of Rs. 10 Lacs of
aggregate face value of lottery tickets printed by the organising State for
a draw
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Rs. 11,000/- on every Rs. 10 Lacs or part of Rs. 10 Lacs of
aggregate face value of lottery tickets printed by the organising State for
a draw
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- Effective
Rate of Service Tax applicable from 01.06.2015 in different situations as per
point of provision of service and payment of services rendered will be as under
:
Service Provided
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Date of Invoice
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Date of Receipt of Payment
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Point of Taxation rate
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Rate of Service Tax
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Before 31.05.15
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After 01.06.2015
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After 01.06.2015
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4(a)(i)
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14%
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Before 31.05.15
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Before 31.05.15
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After
01.06.2015
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4(a)(ii)
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12.36%
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Before 31.05.15
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After 01.06.2015
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Before 31.05.15
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4(a)(iii)
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12.36%
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After 01.06.2015
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Before 31.05.15
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After 01.06.2015
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4(b)(i)
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14%
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After 01.06.2015
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Before 31.05.15
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Before
31.05.15
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4(b)(ii)
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12.36%
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After 01.06.2015
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After
01.06.2015
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Before 31.05.15
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4(b)(iii)
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14%
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- Swachh Bharat Cess @ 2% on value of taxable
services and any Service provided by Government/ Local authority to
Business entity to be notified at a later date.
To read more on latest Service Tax amendments, visit the
following links:
