Following Changes in Service Tax Would be Applicable from the from the date of Finance Bill 2015 receives assent of president:
- Revised recovery and penalty provisions: Maximum penalty equal to 100 % of Service Tax. However, in certain cases the benefit of reduced penalty will be allowed to the assessee. Also, exemption from levy of penalty on defaulters has been removed.
- Reimbursement made taxable under Service Tax: The government has clarified that the value of reimbursements of all expenses incurred during provision of a taxable service shall be subject to Service tax levy.