Changes from 11thJuly, 2014
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Advertisement
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new levy would further extend to advertisements in internet websites, out-of-home media, on film screen in theatres, bill boards, conveyances, buildings, cell phones, Automated Teller Machines, tickets, commercial publications, aerial advertising, etc
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Radio Taxis or radio cabs with or without air-conditioned
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The abatement presently available to rent-a-cab service would also be made available to radio taxi service, to bring them on par
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Contract Carriage other than for tourism
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Exemption withdrawn for contract carriage having air-conditioned
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Technical testing of drug
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Exemption now withdrawn
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Services received by Educational institute
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Now the definition of Educational auxiliary services removed and “services will be exempt if received by an eligible institute” provided for clarity.
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Service provided to municipality
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For clarity purpose it was clarified that service which are mentioned in notification only exempted and other services will be taxable as usual.
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Director service to Body Corporate
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Body Corporate like RBI now liable to pay service tax under RCM
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Services of Recovery Agent
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Bank, NBFC and Financial institution liable to pay S.T. under RCM
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Advance ruling
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Now Private Limited company also eligible to make application.
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Exemptions
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· All life micro-insurance schemes approved by IRDA, sum does not exceeds Rs. 50000, service tax will be exempt.
· Transport of organic manure by vessel, rail or road (by GTA) is being exempted.
· Services by way of loading, unloading, packing, storage or warehousing, transport by vessel, rail or road (GTA), of cotton, ginned or baled, is being exempted.
· Services provided by Common Bio-medical Waste Treatment Facility operators by way of treatment, disposal of bio medical waste or processes incidental to such treatment or disposal are being exempted.
· Specialized financial services received by RBI from outside India, in the course of management of foreign exchange reserves, e.g. external asset management, custodial services, securities lending services, are being exempted.
· Services provided by the Indian tour operators to foreign tourists in relation to tours wholly conducted outside India are being exempted.
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Changes from 1stSeptember, 2014
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Cenvat Credit on invoice
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Manufacturer or a service provider shall take credit on inputs and input services within a period of six months from the date of issue of invoice, bill or challan w.e.f. 1st September,2014
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Changes from 1stOctober, 2014
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Works Contract
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Abatement of 60% removed and merged into 70% in composition scheme to remove classification doubts.
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Rate of Interest u/s 75
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Upto 6 months 18%
6<=12 months 18% for 6 months
24% for further 6 months
>12 months 18% for 6 months
24% for further 6 months
30% for beyond one year
Note: 3% concession for small service provider available.
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E- Payment
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Made mandatory
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Place of Provision rules
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· Under Rule 4, Condition prescribed for imported goods temporarily for repair work now omitted.
· Definition of intermediary amended to includes the intermediary of goods. Rule 9(c) now covered service of commission agent or consignment agent.
· Hiring of vessel (excl yachts) and aircrafts being excluded from rule 9(d) and now governs as per general rule. POP will be place of location of service receiver.
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Point of taxation rules
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In RCM case, Date of Payment or 1st after passing of 3 months from invoice date will be POT. (RULE -10)
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Cenvat Credit of renting of motor cab by sub contractor to main contractor
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Now the Cenvat credit allowed if service of hiring of rent cab being taken by person engaged in similar line of business. The Cenvat credit eligibility restricted to 40% if service tax will be paid or payable on full value of the service i.e. without any abatement.
Note: same provision also made applicable in case of tour operator service.
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Transport of goods by vessel
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Taxable portion now reduced from 50% to 40%. Effective rate will be 4.944%
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Renting of motor vehicle
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Service provider not taking abatement, the service provider and service receiver liable to pay S.T. 50% each.
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