Budget VIII- Analytical view of notification and their effective date of applicability

[CA Akash Phophalia]

BUDGET - VIII (Notification wise changes)

Notification No	Changes	Effective Date
03/2015	Deletion of Notification No 42/2012 dated 29.06.2012 Rule 2(f) intermediary and Rule (9)	01.03.2015
04/2015	Notification No 31/2012 dated 20.06.2012 Insertion of word “port, airport or land custom station” instead of “port or airport” Currently exemption to GTA services for “place of removal to ICD, or CFS or port or airport” and “ICS or CFS to port or airport”	01.04.2015
05/2015	Service Tax Rules
	Rule 2(1)(aa) Definition of aggregator inserted - “aggregator” means a person, who owns and manages a web based application, and by means of the application and a communication device, enables a potential customer to connect with persons providing service of a particular kind under the brand name or trade name of the aggregator”.	01.03.2015
	Rule 2(bca) Definition of Brand name or trade name.	01.03.2015
	Person liable to pay service tax - aggregator of the service, or representative of aggregator or the person appointed by the aggregator.	01.03.2015
07/2015	Reverse Charge Service Provider Service receiver % payable by provider % payable by other than provider Mutual Fund Agent or Distributor Mutual Fund or Asset Management Company Nil 100% Selling or Marketing agent of lottery tickets Lottery Distributor or Selling Agent Nil 100% Manpower Supply or Security services by Individual, HUF, or Partnership Firm Body Corporate Nil 100% Any person involving an aggregator Any person Nil 100% by Aggregator or Agent or Representative	01.04.2015
05/2015	Service Tax Rules
	New Registration Process defined.	01.03.2015
	New provision for issuing digitally signed invoices is being added along with the option of maintaining of records in electronic form and their authentication by means of digital signatures. The conditions and procedure shall be specified by CBEC.	01.03.2015
	Rule 6(6A) related to recovery is omitted as the same is now incorporated in Section 73.	01.03.2015
	Changes is Service Tax Rates Nature of Service Old Rate New Rate Air Travel Agent 0.6% of the basic fare in case of domestic bookings 1.2% of the basic fare in case of international bookings 0.7% of the basic fare in case of domestic bookings 1.4% of the basic fare in case of international bookings Insurer carrying life insurance business 3% of premium in first year 1.5% of premium in second year onwards 3.5 % of premium in first year 1.75% of premium in second year onwards Money changing services 0.12 % of the gross amount of currency exchanged upto ₹ 1,00,000, subject to minimum of rupees 30 ₹ 120 and 0.06% of the gross amount of currency exchanged for an amount of rupees exceeding 1,00,000 and upto ₹ 10,00,000 ₹ 660 and 0.012% of the gross amount of currency exchanged for an amount of rupees exceeding 10,00,000 and subject to a maximum of ₹ 6000. 0.14 % of the gross amount of currency exchanged upto ₹ 1,00,000, subject to minimum of rupees 35 ₹ 1140 and 0.07% of the gross amount of currency exchanged for an amount of rupees exceeding 1,00,000 and upto ₹ 10,00,000 ₹ 770 and 0.014% of the gross amount of currency exchanged for an amount of rupees exceeding 10,00,000 and subject to a maximum of ₹ 7000. Distributor or selling agent in organizing a lottery  7000 on every 10 lacs of aggregate face value (Condition of payout more than 80%)  11000 on every  10 lacs of aggregate face value (Condition of payout less than 80%)  8200 on every  10 lacs of aggregate face value (Condition of payout more than 80%)  12800 on every  10 lacs of aggregate face value (Condition of payout less than 80%)	Date of enactment of Finance Bill. Notified by the Central Govt
06/2015	Mega Exemption Notification Effect from date notified by Central Government Intermediate production process as job work in relation to any goods excluding alcoholic liquors for human consumption on which appropriate duty is payable by the principal manufacturer. (Exemption rationalized) Services by way of right to admission to (i) exhibition of cinematographic film, circus, dance or theatrical performance including drama or ballet or (ii) to recognized sporting event or (iii) to award function, concert, pagent, musical performance or any sporting event other than recognized sporting event, where the consideration for admission is not more than  500 per person. (From negative list to exemption) New Exemptions Effect from 01.04.2015 Services of ambulance by way of transportation of patients are exempted. (Earlier for clinical establishment, medical practitioners and paramedics only) Life insurance services under “Varishtha Pension Bima Yojna” Services by operator of Common Effluent Treatment Plant by way of treatment of effluent. Services of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables. Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo. (Meaning of highlighted terms shall be obtained from Wild Life Protection Act 1972 and from Trade Unions Act 1926) Service by way of exhibition of movie by an exhibitor to the distributor or an association of persons consisting of the exhibitor as one of its members. Exemptions withdrawn effect from 01.04.2015 Services to Govt, local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of a civil structure or any other original works meant predominantly for use other than for commerce, industry or any other business or profession; a structure meant predominantly for use as (i) an educational, (ii) a clinical, (iii) an art or culture establishment; a residential complex predominantly meant for self use or the use of their employees or other persons specified in the Explanation1 to clause 44 of Section 65B of the said act. Services by way of construction, erection, commissioning, or installation of original works pertaining to an airport or port. Services by an artist by way of performance in folk or classical art forms of (i) music, or (ii) dance, or (iii) theatre, if the consideration charged for such performance is not more than one lakh rupees. Exemption on transportation through rail or vessel or through road by way of GTA to foodstuff, tea, coffee, jiggery, sugar, edible oil is withdrawn and now exemption is restricted to milk, salt and food grain including flours, pulses and rice. Exemption to mutual fund agents or AMC agents; distributors to mutual funds or AMC; and selling or marketing agent of lottery tickets to a distributor or a selling agent is withdrawn. Services by way of making telephone calls from departmentally run public telephone, guaranteed public telephone operating only for local calls, free telephone at airport and hospital where no bills are being raised.	Notified Date 01.04.2015
08/2015	Abatement Notification no 26/2012 For transport of goods by rail or by GTA or by vessel and for transport of passengers by rail, uniform rate and conditions are mandated. The taxable value of services in all the cases is 30%. Further the condition for all the three is regarding non-availment of CENVAT credit on inputs, capital goods and input services. Transport of passengers by air- Earlier it was 40%, now for economy class 40% and for others 60% taxable value with the condition of non-availment of CENVAT credit on inputs and capital goods. Abatement in relation to services provided to chit is withdrawn. Thus service tax is required to be paid on the consideration received by way of fee, commission, or the like at full rate and CENVAT is also available. Delhi Chit Fund Association case of 2013 says subscription to chit is transaction in money and this notification is void to that extent.	01.04.2015

 

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