Service tax rate change subsumes education cesses and will take effect only from a government notified date.
The Service Tax rate increase will subsume the Education Cess and Secondary and Higher Education Cess and will come into effect only from a date to be notified by the Central Government after enactment of the Finance Bill, 2015; until such notification the existing levy, including the cesses, continues. Valuation rules for services supplying food or beverages by restaurants, eating joints or messes remain unchanged by the Budget and the specified portion of the amount charged for such supplies continues to be treated under the existing valuation and abatement provisions.

Extension of e-payment deadline allows taxpayers to complete electronic payments until the midnight cutoff while banks extend counter hours.
The circular implements an operational extension: electronic transactions for government receipts are permitted until midnight on the final date and assessees may make e-payments up to that midnight cutoff; agency banks must keep designated branch counters handling government business open for the full day on the preceding date and until 8:00 p.m. on the penultimate date. Tax authorities are requested to issue trade notices to publicize the extended e-payment and banking hours.

Service Tax rate revision subsuming education cesses alters valuation, exemptions, and introduces a new cess provision.
Service Tax rate is revised to subsume education cesses into a single higher rate effective from a notified date; an enabling provision allows imposition of a Swachh Bharat Cess on taxable services from a notified date. The Negative List and definitions are amended to tax admission to many entertainment events and certain manufacturing-related services, and to exclude government-to-business services from the Negative List. Valuation rules, penalty and recovery provisions, Service Tax Rules (including aggregator liability and digital records) and Cenvat Credit Rules (including extended credit period and reverse charge treatment) are amended, with staggered effective dates and transitional provisions.

Service tax registration requirements ensure online PAN-based trust registration with document submission and verification procedures.
Registration for a single premises requires online filing in Form ST-1 on ACES, mandatory PAN (except Government departments), and provision of email and mobile contact. Registration is granted online within two days as trust-based registration and a downloadable ACES Registration Certificate suffices as proof. Within seven days of online filing applicants must submit by post self-attested documents for verification including PAN copy, identity and photograph, proof of possession of premises, bank account details, constitutional documents and authorisation for the applicant. Verification authority and grounds for revocation are specified, with cross-reference to Rule 4 sub-rules and related registration rules.

Service delivery SEVOTTAM rollout establishes nodal officer, dak counter, helpdesk and CPGRAMS grievance channel for citizens.
Rollout of SEVOTTAM establishes a quality management framework by nominating a Nodal Officer, creating a Dak and Acknowledgement Counter to receive and distribute citizen correspondence with staff issuing acknowledgements, and setting up a Help Desk to assist trade and the public. A customer grievance redressal and feedback mechanism is provided, including feedback forms at the Help Desk and submission of grievances through the CPGRAMS online portal.

Jurisdiction realignment: service tax boundaries reorganised and assessees must use existing CDR until migration completes.
Service tax administrative boundaries have been redefined to align with re organised municipal wards and peripheral taluks and districts, effective 20.01.2015, as per the annexed schedule. Assessees should consult the departmental website or provided contact numbers for jurisdictional details. Until migration to the new CDR code is completed, assessees must continue using their existing CDR code for tax payments and must quote their Service Tax Registration Number in all correspondence. The Trade Notice supersedes prior notices and requests acknowledgment of receipt.