KEY CHANGES IN SERVICE TAX

Key Changes in Service Tax:

1. Krishi Kalyan Cess @ 0.5% on gross value of taxable services (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