Today Central Government has issued most awaited notification for change in effective rate of Service Tax from 12.36% to 14%. New rates will be applicable from 1st June, 2015 (Notification No. 14/2015-ST dated 19th May, 2015). Corresponding changes in Rules 6 of Service Tax Rules, 1994 for increase in rate of Service Tax for:
- 1. Air Travel Agent,
- 2. Life Insurance Business,
- 3. Foreign Exchange Brokers and
- 4. Distributor & Selling Agent of Lottery
will also be applicable w.e.f. 1st June, 2015 (Notification No. 15/2015-ST).
A. For Air Travel Agent under Rule 6 (7) of Service Tax Rules, 1994
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On Basic Fare
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New Rate wef 01.06.2015
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Old Rate
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For Domestic Booking
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0.70%
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0.60%
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For International Booking
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1.4%.
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1.2%.
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B. For Life Insurance under Rule 6(7A)(ii) of Service Tax Rules, 1994
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Gross Amount of Premium Charged
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New Rate wef 01.06.2015
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Old Rate
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1st year
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3.50%
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3%
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Subsequent Years
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1.75%
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1.50%
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C For Money Changing under Rule 6(7B) of Service Tax Rules, 1994
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Gross Amount of Currency Exchanged
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New Rate wef 01.06.2015
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Old Rate
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Up to Rs. 1,00,000
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0.14% subject to minimum of Rs. 35
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0.12% subject to minimum of Rs. 30
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For an amount exceeding Rs. 1,00,000 and up to Rs. 10,00,000
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Rs. 140 and 0.07%
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Rs. 120 and 0.06%
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For an amount exceeding Rs. 10,00,000
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Rs. 770 and 0.014% subject to maximum of Rs. 7,000
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Rs. 660 and 0.012% subject to maximum of Rs. 6,000
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D. For Distributor or Selling Agent of Lotteries under Rule 6(7C) of Service Tax Rules, 1994
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Guaranteed Prize Payout
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New Rate wef 01.06.2015
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Old Rate
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More than 80%
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Rs. 8,200/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw
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Rs. 7,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw
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Less than 80%
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Rs. 12,800/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw
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Rs. 11,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw
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Chart Prepared by Simple Tax India Team
In addition following changes will be applicable w.e.f. 1st June, 2015:
- 1. Service Tax on amusement facilities and Entertainment Events however exemption is available in respect of following services by way of right to admission to,-
- a. exhibition of cinematographic film, circus, dance, or theatrical performance including drama or ballet;
- b. recognised sporting event;
- c. award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event, where the consideration for admission is not more than Rs. 500 per person.”
- 2. Service Tax on Liquor Job Work;
Date of applicability of following provisions is yet to be notified:
- 1. Expansion of scope of services provided by Government and Local Authority; and
- 2. Applicability of ‘Swachh Bharat Cess’.
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