Changes applicable to service tax from 14th May 2015 i.e., after presidents assent to Finance bill 2015

Fol­low­ing changes in Ser­vice Tax would be applic­a­ble from the date noti­fied after Finance bill receives assent of resident:

1) Rate of Ser­vice Tax increased from 12.36% to 14%: The pro­posed revi­sion of the rate of Ser­vice Tax from 12.36% (inclu­sive of Edu­ca­tion Cess­es) to 14% (sub­sum­ing Edu­ca­tion Cess­es) will be applic­a­ble from the date to be noti­fied after the Finance Bill, 2015 receives the assent of the pres­i­dent. There­fore from 1st, April, 2015 ser­vice tax would be charged as 12.36% only.

2) Entry to amuse­ment park/ enter­tain­ment events which was ear­li­er exempt­ed under neg­a­tive list of ser­vices now brought under the ambit of ser­vice tax. How­ev­er, exemp­tion is still applic­a­ble to enter­tain­ment events in case the entry charge does not exceed Rs. 500.

3) Job Work for pro­duc­tion of alco­holic liquor is now taxable.