Changes applicable w.e.f. 1st June, 2015 in Service Tax

Following changes shall be applicable w.e.f. June 1, 2015

  • This new rate of 14% shall be applicable from June 1, 2015. Education Cess and Secondary & Higher Education Cess shall not be levied on taxable services w.e.f. June 1, 2015. Government issued Notification no 14/2015-ST dated 19-5-2015 in this regard.

  • New Service Tax rates for composition schemes were introduced vide Notification No. 5/2015-ST dated 1-3-2015. These rates shall also be effective from June 1, 2015. Government issued Notification no 15/2015-ST dated 19-5-2015 in this regard.
  • Under Rule 6(3) of Cenvat Credit Rules, 2004, manufacturer or service provider is liable to pay certain percentage of value of exempted goods manufactured or value of exempted services rendered where he utilizes Cenvat credit in manufacture/provision of exempted as well as of dutiable goods/services and doesn’t maintain separate account in this regard. Earlier this rate was 6% which had been increased to 7% w.e.f. June 1, 2015.
  • Entry to amusement park/ entertainment events which was earlier exempted under negative list of services now brought under the ambit of service tax & is applicable from 1st June, 2015. However, exemption is still applicable to entertainment events in case the entry charge does not exceed Rs. 500.
  • Job Work for production of alcoholic liquor is now become taxable. Same has been brought under tax net & is applicable from 1st June, 2015.
  • services provided under the Power System Development Fund Scheme of the Ministry of Power (hereinafter referred to as the Scheme), from the whole of the service tax leviable thereon under section 66B of the said Act:

(A) re-gasification of Liquefied Natural Gas imported by the Gas Authority of India Limited (GAIL);

(B) transportation of the incremental Re-gasified Liquefied Natural Gas (RLNG) (ebid RLNG) to the power generating companies or plants as specified in the Annexure-I and Annexure -II to this notification.

Subject to Certain Conditions.

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