Changes applicable to service tax from Presidents assent to Finance Bill 2015

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.

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