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Analysis of Key Changes in Service Tax : Budget 2016-17
Posted on: 01/Mar/2016 2:19:14 PM
- Krishi Kalyan Cess @ 0.5 percent on gross value of taxable services (from 01.06.2016) Total ST rate @ 15 percent.
- AC Bus service by Road Transport Corporation taxable @ 6 percent (from 01.06.2016)
- Rate of ST for the package tour increased from 3.625 percent to 4.35 percent
- ST on foreman commission at 10.15 percent
- Rate of ST for sale of flats increased from 3.625 percent to 4.35 percent
- Rate of ST for transport of goods by Rail in container other than by IR increased from 4.35 percent to 5.8 percent
- Rate of ST for transport of used household increased from 4.35 percent to 5.8 percent
- Assignment of radio-frequency spectrum and subsequent transfers thereof taxable
- Senior advocate service liable to service tax.
- Transport of passengers ropeway, cable car or aerial tramway made liable for ST
- Interest rate reduced to 15 percent (if ST not collected) and 24 percent (if ST collected)
- Due date for issue of SCN extended from 18 months to 30 months
- The monetary limit for prosecution cases enhanced to Rs.2 Crores.
- Dispute resolution scheme for the cases pending before Commissioner (Appeals)
- New levy on services exempted only if amount received and invoice raised before the notified date
- Spl. Exemption for construction canal, dam or other irrigation works for the period 01.07.2012 to 29.01.2014.
- 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
- Spl. Exemption for constriction of ports and airports for the period from 01.04.2015 to 29.02.2016 for the contracts entered prior to 01.03.2015
- Construction under House For All (Urban) Mission / Pradhan Mantri Awas Yojana (PMAY), exempted
- Construction of low cost houses up to a carpet area of 60 sq.m per house under Govt. scheme exempted from service tax.
- Levy of Central Excise duty/CVD and service tax on IT Software made mutually exclusive
- Services provided by the Indian Institutes of Management (IIM) exempted
- Business Entity receiving any service from government to pay service tax
- Business entity located in India to pay service tax on ocean freight availed by foreign shipping line
- HUF and One person company (<50L T/o) to pay on quarterly basis
- Annual returns to be filed by specified service providers by 30th Nov every year
CA T.R.Srinivasan
Shree Guru Kripa`s Institute of Management
Ph.No.: 97899 76079
Mail ID: trs.connects@gmail.com
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