TaxTMI 
TaxTMI 
SERVICE TAX
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.... car or aerial tramway is being withdrawn with effect from 1^st April, 2016. Nil 14% 4. The Negative List entry that covers 'service of transportation of passengers, with or without accompanied belongings, by a stage carriage' is being omitted with effect from 1^st June, 2016. Service Tax is being levied on transportation of passengers by air conditioned stage carriage with effect from 1^st June, 2016, at the same level of abatement as applicable to the transportation of passengers by a contract carriage, that is, 60% without credit of inputs, input services and capital goods. Nil 5.6% III New Exemptions 1. Services by way of construction etc. in respect of- (i) housing projects under Housing For All (HFA) (Urban) Mission/Pradhan Mantri Awas Yojana (PMAY); (ii) low cost houses up to a carpet area of 60 square metres in a housing project under "Affordable housing in Partnership" component of PMAY (iii) low cost houses up to a carpet area of 60 square metres in a housing project under any housing scheme of the State Government, are being exempted....
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....ed centrally by Directorate General of Training, Ministry of Skill Development & Entrepreneurship are being exempted from Service Tax with effect from 1^st April, 2016. 14% NIL 12. The threshold exemption to services provided by a performing artist in folk or classical art forms of music, dance or theatre is being enhanced from Rs. 1 lakh to Rs. 1.5 lakh charged per event with effect from 1^st April, 2016. 14% Nil IV Relief Measures 1 To provide level playing field to Indian Shipping lines vis-a-vis foreign shipping lines, it is being proposed to: a) zero rate the services provided by Indian Shipping lines by way of transportation of goods by a vessel to outside India with effect from 1^st March, 2016, and b) impose Service Tax on services provided by them by way of transportation of goods by a vessel from outside India up to the customs station in India with effect from 1^st June, 2016 so as to complete the credit chain and enable Indian Shipping Lines to avail and utilize input tax credits. No credit Nil Inputs, input services & capital goods credit 14% 2 Notification No. 41/2012- ST, dated the 29....
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.... V Interest Rate 1. Interest rates on delayed payment of duty/tax across all indirect taxes are being rationalized and made uniform at 15%, except in case of Service Tax collected but not deposited to the exchequer, in which case the rate of interest will be 24% from the date on which the Service Tax payment became due. In case of assessees, whose value of taxable services in the preceding year/years covered by the notice is less than Rs. 60 Lakh, the rate of interest on delayed payment of Service Tax will be 12%. [The above changes will come into effect on the day the Finance Bill receives the assent of the President.] Customs 18% Excise 18% Service Tax 18% 24% 30% Customs, Excise & Service Tax 15%; 24% in case of Service Tax collected but not deposited to the exchequer VI Rationalization of Abatements Existing Proposed 1 Credit of input services is being allowed on transport of passengers by rail at the existing rate of abatement of 70%. 4.2% Without credit 4.2% With input service credit 2 Credit of input services is being allowed o....
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....on 67A is being amended to obtain rule making powers in respect of the Point of Taxation Rules, 2011, so as to provide that the point in time when service has been provided or agreed to be provided shall be determined by rules made in this regard. Point of Taxation Rules, 2011 is being amended accordingly. 3 Section 93A of the Finance Act, 1994 is being amended so as to allow rebate by way of notification as well as rules. 4 Explanation 2 in section 65B (44) of the Finance Act, 1994 is being amended so as to clarify that any activity carried out by a lottery distributor or selling agent in relation to promotion, marketing, organizing, selling of lottery or facilitating in organizing lottery of any kind, in any other manner, of the State Government as per the provisions of the Lotteries (Regulation) Act, 1998 (17 of 1998), is leviable to Service Tax. 5 Notification No. 27/2012 - C.E. (N.T.) dated 18.06.2012 is being amended with effect from 1^st March, 2016 so as to provide that time limit for filing application for refund of CENVAT Credit under Rule 5 of the CENVAT Credit Rules, 2004, in case of export of services, is 1 year from the date of : a) receipt of ....
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....e also being made in the provisions relating to input service distributor, including extension of this facility to transfer input services credit to outsourced manufacturers, under certain circumstances. The amendments in these rules will also enable manufacturers with multiple manufacturing units to maintain a common warehouse for inputs and distribute inputs with credits to the individual manufacturing units. 3 The rules are being amended to provide for reversal of CENVAT Credit of inputs/input services which have been commonly used in providing taxable output service and an activity which is not a 'service' under the Finance Act, 1994. 4 The CENVAT credit rules are being amended so as to allow CENVAT credit of Service Tax paid on amount charged for assignment by Government or any other person of a natural resource, over such period of time as the period for which the rights have been assigned. [The above amendment shall come into effect from 1^st April, 2016.] X Miscellaneous Period for issuing demand notices 1 Section 73 of the Finance Act, 1994 is being amended so as to increase the limitation period from 18 months to 30 months....