CA IPCC Indirect Tax Amendments for Nov 2015

APPLICABLE FOR NOV 2015
INDIRECT TAX – Service Tax
CA KARISHMA
G K M AL I K &
AS S O C I AT E S C h a r t e r e d
Ac c o u n t a n t s
www.cakarishma.com

SERVICE TAX -NEGATIVE LIST
Finance Act 2014- Withdrawal
Service 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- Withdrawal
Service 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 EXEMPTION
Exclusions from Mega Exemption Finance Act
2014:
1. Concept of auxiliary education services done away with
and exemption restricted to only few specific services
transportation ,catering, security or cleaning or house-
keeping
services relating to admission, examination
2. Clinical research on human participants chargeable to
service tax.
3. Contract carraige- A/C

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 EXEMPTION
Exclusions 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 2015
1. 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.GK MALIK & ASSOCIATES Chartered Accountants www.cakarishma.com

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

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CA IPCC Indirect Tax Amendments for Nov 2015