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.