Changes are being proposed in a number of provisions of the Finance Act, 1994, Service Tax Rules, 1994, CENVAT Credit Rules, 2004 and Export of Services Rules, 2005

Widening of service tax base expands taxable services and adjusts thresholds, definitions, exemptions and compliance rules.

The Finance Bill expands the service tax base and adjusts thresholds: it raises exemption and registration limits for small providers, consolidates and newly specifies taxable services-notably telecommunication, mining, renting of immovable property for business, works contract services (with valuation rules and optional composition), content development for telecom/advertising/internet, non-banking asset/fund management, and design services-and amends definitions, exclusions and procedural rules. New targeted exemptions (RWAs, incubators/incubatees, CRO clinical trials, and digital cinema delivery) and amendments to CENVAT, export rules, registration, return revision and reverse-charge mechanisms are also provided.