Major Changes in Service Tax

1.    Krishi Kalyan Cess @ 0.5% on gross value of taxable services with ITC (from 01.06.2016) Total ST rate @ 15%

2.    AC Bus service by Road Transport Corporation taxable @ 6% (from 01.06.2016)

3.    Rate of ST for the package tour increased from 3.625% to 4.35%

4.    ST on foreman commission at 10.15%

5.    Rate of ST for sale of flats increased from 3.625% to 4.35%

6.    Rate of ST for transport of goods by Rail in container other than by IR increased from 4.35% to 5.8%

7.    Rate of ST for transport of used household increased from 4.35% to 5.8%

8.    Assignment of radio-frequency spectrum and subsequent transfers thereof taxable

9.    Senior advocate service liable to service tax.

10.  Transport of passengers ropeway, cable car or aerial tramway made liable for ST

11.   Interest rate reduced to 15% (if ST not collected) and 24% (if ST collected)

12.  Due date for issue of SCN extended from 18 months to 30 months

13.  The monetary limit for prosecution cases enhanced to Rs.2 Crores.

14.  Dispute resolution scheme for the cases pending before Commissioner (Appeals)

15.  New levy on services exempted only if amount received and invoice raised before the notified date

16.  Spl. Exemption for construction canal, dam or other irrigation works for the period 01.07.2012 to 29.01.2014.

17.  Restoration of exemption for construction of non-commercial buildings for the contracts enter prior to 01.03.2015 for the period upto 31.03.2020

18.  Spl. Exemption for constriction of ports and airports for the period from 01.04.2015 to 31.03.2020 for the contracts entered prior to 01.03.2015

19. Construction under House For All (Urban) Mission / Pradhan Mantri Awas Yojana (PMAY), exempted

20.Construction of low cost houses up to a carpet area of 60 sq.m per house under Govt. scheme exempted from service tax.

21.Levy of Central Excise duty/CVD and service tax on IT Software made mutually exclusive

22.Services provided by the Indian Institutes of Management (IIM) exempted

23.Business Entity receiving any service from government to pay service tax

24.Business entity located in India to pay service tax on ocean freight availed by foreign shipping line

25.HUF and One person company (<50L T/o) to pay on quarterly basis

26.Annual returns to be filed by service provider by 30th Nov every year

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About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

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