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

Fol­low­ing Changes would be applic­a­ble on Ser­vice Tax with effect from 1st April, 2015

1) Exemp­tion giv­en in respect of trans­porta­tion of food stuff will be lim­it­ed to the food grains only.

2) Relief in rela­tion to pre­con­di­tion, pre-cool­ing ripen­ing label­ing of fruits and veg­eta­bles is allowed.

3) Ser­vice pro­vid­ed by way of exhi­bi­tion of movie by the exhibitor (the­atre own­er) to the dis­trib­u­tor or an asso­ci­a­tion of per­sons con­sist­ing of such exhibitor as one of its mem­bers is being exempted.

4) Ben­e­fit giv­en to senior cit­i­zen: Exemp­tion is grant­ed in respect of life insur­ance ser­vices pro­vid­ed by way of Var­ishtha Pen­sion Bima Yojna

5) Exemp­tion for ambu­lance ser­vices: Gov­ern­ment has giv­en spe­cif­ic exemp­tion for trans­port­ing the patients through ambulances.

6) Uni­form abate­ment for trans­port by rail, road and ves­sel: A uni­form abate­ment is now being pre­scribed for trans­port by rail, road and ves­sel there­by ser­vice Tax shall be payable on 30% of the val­ue of such ser­vice sub­ject to a uni­form con­di­tion of non-avail­ment of CENVAT Cred­it on inputs, cap­i­tal goods and input services.

7) Abate­ment on busi­ness class flights has been reduced to 40% from 60%.

8) Con­struc­tion of Gov­ern­ment Schools and Build­ings would become taxable.

9) Con­struc­tion per­tain­ing to port/airport would become taxable.