Amendments in Service Tax

      The definition of “Chit”, “Entertainment event” and “Amusement facility” has been omitted by way of Notification

      The rate of Service Tax as increased from 12% to 14%

      After the rates has been increased, there is no Education Cess and Secondary and Higher Education Cess on service tax

      Exemption of carrying out an intermediate production process as Job work in relation to alcoholic liquor for human consumption is removed Mega Exemption Notification, & by making such services as taxable.

      For the following the exemptions are available:

• Admission to museum, national park, wild life sanctuary, tiger reserve or zoo
• Admission to exhibition of cinematographic film, circus, dance or theatrical performance including drama or ballet
• Admission to any sporting event organized by a recognized sports body where the participating team or individual represent any district, state, zone or country.
• Admission to award function, concert, pageant, musical performance, sporting event other than recognized sport event is exempted from levy of service tax provided consideration is not more than Rs.500/-

      Taxable services provided under Power System Development Fund Scheme of Ministry of Power are exempted from the whole of levy of service tax till 1st day of April 2017. Such exemption shall be eligible subject to production of Certificate before Central Excise Officer and other conditions.

      Increase in rates of service tax (in case of Composition scheme) for service provided by Air Travel agent, Insurance service, Forex (money changing service) and service provided by lottery distributor and selling agent.

1.       Air Travel Agent:

·         Domestic bookings of route for travel by air---- 0.7% of the basic fare

·         International bookings of route for travel by air---- 1.4% of the basic fare

2.       Insurance Service:

·         First year ----   3.5% of the gross amount of premium charged

·         Subsequent Year ---- 1.75% of the gross amount of premium charged

3.       Money Changing (Forex)

·         Upto Rs.100,000 ----  0.14% of the gross amount of currency exchanged or Rs.35 whichever is higher

·         Exceeding Rs.1,00,000 and upto Rs.10, 00, 000 ---- Rs.140 + 0.07% of the (gross amount of currency exchanged-Rs.1,00,000)

·         Exceeding Rs.10,00,000 ---- Rs.770 + 0.014% of the (gross amount of currency exchanged -Rs.10,00,000) or Rs.7,000/- whichever is lower

4.    Service provided by lottery distributor and selling agent

·         Where the guaranteed lottery prize payout is > 80% ---- Rs.8,200/- on every Rs.10 Lakh (or part of Rs.10 Lakh) of aggregate face value of lottery tickets printed by the organizing state for a draw.

·         Where the guaranteed lottery prize payout is < 80% ---- Rs.12800/- on every Rs.10 Lakh (or part of Rs.10 Lakh) of aggregate face value of lottery tickets printed by the organizing state for a draw