CA IPCC Indirect Tax Amendments for Nov 2015

APPLICABLE FOR NOV 2015

INDIRECT TAX – Service Tax

CA KARISHMA

GK MAL IK & ASSOCIATES

Char te red Accountants

www.cakarishma.com

SERVICE TAX -NEGATIVE LIST

Finance Act 2014- WithdrawalService tax to be levied on sale of space or time for advertisements in all

media except print media Radio taxis / radio cabs Finance Act 2015- WithdrawalService tax to be levied Admission to entertainment event or access to

amusement facility” except (a) exhibition of cinematographic film, circus, dance, theatre, dance or ballet.(b) Recognized sporting event

GK MALIK & ASSOCIATES Chartered Accountants www.cakarishma.com

MEGA EXEMPTION Inclusions- New Exempt Services

Finance Act 2014: Services provided by common bio-medical waste

treatment facility operators to clinical establishments exempted

Transport of organic manure by vessel, rail or road (by GTA) exempted

IRDA approved life micro-insurance schemes with sum assured not exceeding Rs.50,000 exempted.

Loading, unloading, packing, storage or warehousing, transport by vessel, rail or road (GTA), of cotton - ginned or baled - exempted


MEGA EXEMPTION Inclusions- New Exempt Services Finance

Act 2014: Services received by RBI from outside India in relation to

management of foreign exchange reserves exempted Services provided by Indian tour operators to foreign

tourists in relation to a tour wholly conducted outside India exempted

Services provided by NSDC or by an approved SSC/assessment agency/training partner exempted

Services provided by cord blood banks by way of preservation of stem cells exempted

Loading/unloading/packing/storage/warehousing of rice exempted


MEGA EXEMPTIONExclusions from Mega Exemption Finance Act

2014:1. Concept of auxiliary education services done away

with and exemption restricted to only few specific servicestransportation ,catering, security or cleaning or house-keepingservices relating to admission, examination

2. Clinical research on human participants chargeable to service tax.

3. Contract carraige- A/CGK MALIK & ASSOCIATES Chartered Accountants www.cakarishma.com

MEGA EXEMPTION Inclusions- New Exempt Services Finance Act

2015: Ambulance services provided by all service providers

exempted General Insurance provided under Pradhan Mantri

Suraksha Bima Yojana exempted. Life insurance provided under Varishtha Pension Bima

Yojna, Pradhan Mantri Jeevan Jyoti Bima Yojna and Pradhan Mantri Jan Dhan Yojna exempted.

Collection of contribution under Atal Pension Yojna (APY) exempted

Treatment of effluent by common Effluent Treatment Plant operator exempted


Inclusions- New Exempt Services Finance Act 2015:

Pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables exempted

Admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo exempted

Exhibition of movie of exhibitor to distributor/association of persons consisting of such exhibitor as one of its members exempted

Service provided with respect to Kailash Mansarovar and Haj pilgrimage exempted

MEGA EXEMPTION


MEGA EXEMPTIONExclusions from Mega Exemption Finance Act 2015 Service tax payable on a performance in folk or classical art

forms of music/dance theatre if the consideration therefore exceeds Rs. 1,00,000

Exemption to transportation of food stuff by rail or vessels or road limited to milk, salt and food grain including flours, pulses and rice

Exemption to services (i) mutual fund agent/distributor to a mutual fund or asset management company and (ii) selling/marketing agent of lottery tickets to a distributor/selling agent, withdrawn

Exemption withdrawn for services by way of making telephone calls from departmentally run public telephone etc


MEGA EXEMPTION Exclusions from Mega Exemption Finance Act 2015 Services by way of construction, erection, commissioning, or

installation of original works pertaining to an airport, port are now taxable

Services to Govt.: Services provided to the Government, by way of construction, renovation, or alteration of –

(a) a civil structure or any other original works meant predominantly for use other than for

commerce, industry, or any other business or profession; (b) a civil structure meant predominantly for use as (i) an

educational, (ii) a clinical, or (iii) an art or cultural establishment (c) a residential complex predominantly meant for self-use or the

use of their employees are now taxable having been removed from the Mega Exemption Notification 25/2012 ST


ABATEMENT FINANCE ACT 2014

1. 60% abatement prescribed for transport of passengers by a contract carriage (other than motor cab) and a radio taxi

2. Abatement in respect of transport of goods in a vessel increased from 50% to 60%

FINANCE ACT 20151. Uniform abatement of 70% prescribed for (i) goods and

passenger transport by rail and (ii) goods transport by road and vessel, subject to uniform condition of non-availment of CENVAT credit on inputs, capital goods and input services

2. Abatement in case of passenger transportation by air in non-economy class reduced from 60% to 40%

3. No abatement for services provided in relation to chit


SERVICE TAX PROCEDURES E-payment of service tax mandatory for

all assessees irrespective of the tax paid during previous year [Rule 6(2)]

Slab rate of interest introduced for delayed payment of service tax (Section 75)


AGGREGATOR MODEL W.e.f from 1-3-2015 any e-commerce

transaction under aggregator model is now taxable. The liability to discharge service tax is on the aggregator under reverse charge.

Aggregator means a person, who owns and manages a web based software application, and by means of the application and a communication device, enables a potential customer to connect with the persons providing service of a particular kind under the brand name or trade name of the aggregator.


AGGREGATOR MODEL Aggregators like Uber, Ola Cabs, Flipkart,

Snapdeal, Amazon, AirBnB, etc. will now be liable for Service Tax.


CA IPCC Indirect Tax Amendments for Nov 2015

Education

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