READY RECKNOR SERVICE TAX CHANGES 01-04-2015

CA. Rajeev K. Sharma

91-9814214503
Sr.
No.

Concerned
Provided
Service
And by
Related Issue

Provided
to

Previous Position

Position w. e. f.
01-04-2015

Comments

1
New rate will be 14%
All services except
where

composite

rate is applicable like

NA

Rate of Service tax was

12.36%

Now as on 01-04-2015
rate of service tax is
the same 12.36%

air ticketing etc.

Education cess and secondary

and higher education cess shall
be subsumed in the rate of 14%
after enactment of finance bill
2015

Air Travel Domestic

NA
0.06%

Booking

Air

Travel

Life Insurance First

Year Premium

0.06%

Finance Bill 2015 shall be

0.07%

NA

New rate after the enactment of

1.2%

International Booking

New rate after the enactment of

1.2%

Finance Bill 2015 shall be

1.4%

NA

New rate after the enactment of

3.%

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3%

Finance Bill 2015 shall be 3.5%

NA

New rate after the enactment of

Finance Bill 2015 shall be
1.75%

Life

Insurance

Subsequent

Year

1.5%

1.5%

premium

Money
Changer
Services
where
Amount of currency
exchanged upto RS.
0.1 million
Money
Changer
Services
where
Amount of currency
exchanged
exceeding RS. 0.1
million
and
upto
INR1 million
Money
Changer
Services
where
Amount of currency
exchanged
exceeding
INR1
million
Lottery
Where
guaranteed
prize
payout is more than

NA

0.12 per cent subject to

minimum of RS. 30

0.12 per cent subject to

minimum of RS. 30

New rate after the enactment of

Finance Bill 2015 shall be
Rs. 35

NA

Rs. 120 and 0.06 per cent

RS. 120 and 0.06 per

cent

New rate after the enactment of

Finance Bill 2015 shall be
RS. 140 and 0.07 per cent

NA

Rs 660 and 0.012 per cent

subject to maximum of RS.
6,000 -

Rs 660 and 0.012 per

cent subject to
maximum of RS. 6,000

New rate after the enactment of

Finance Bill 2015 shall be
Rs 770 and 0.014 per cent
subject to maximum of RS.
7,000

NA

Rs. 7000

Rs. 7000

New rate after the enactment of

Finance Bill 2015 shall be
Rs. 8200

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80 per cent

10

NA

Rs. 11000

Rs. 11000

New rate after the enactment of

Finance Bill 2015 shall be
Rs. 12800

NA

Rate of abatement was

75%

Now Rate of
abatement is
70%

Now taxable portion is 30%

Lottery Where
guaranteed prize
payout is < 80 %

11

Transport of goods
by Road

previously 25% was taxable so

effective rate now shall be
12.36*30/100=3.708%
Previously it was 3.090%

12

Transport of goods
by vessels

NA

Rate of abatement was

60%

Now Rate of
abatement is
70%

Now taxable portion is 30%

previously 40% was taxable so
effective rate now shall be
12.36*30/100=3.708%
Previously it was 4.944%

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NA

Transport of
Passenger by air
(Other than
economy)

Rate of abatement was

60%

Now Rate of
abatement is
40%

Now taxable portion is 60%

previously 40% was taxable so
effective rate now shall be
12.36*60/100=7.416%
Previously it was 4.944%

13

14

Manpower supply

15

Security services

16

Transport of Goods
Carriage

1.
2.
3.
1.
2.
3.

Individual,
HUF
Partnership
Individual,
HUF
Partnership
NA

A body
corporate

Partial reverse charge

mechanism

A body
corporate

Partial reverse charge

mechanism

Previously exemption was

available to
Agricultural Produce
Foodstuff
Flours
Tea
Coffee
Jiggery
Sugar
Milk products

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Full reverse charge

To be paid by Service
Recipient
Full reverse charge
To be paid by Service
Recipient
Now Exemption is
available to

Previously partial reverse charge

and now full reverse charge in
such cases
Previously partial reverse charge
and now full reverse charge in
such cases
Now exemption withdrawn on
the following

Agricultural Produce
Food grains
Rice
Pulses
Flour
Milk
Salt

All foodstuff except food grains

Tea
Coffee
Jiggery
Sugar
Milk products
Edible oil

Salt
Edible oil

17

Transport by rail or
vessel

NA

Previously exemption was

available to

Now exemption is
available only to

Now exemption withdrawn on

the following

Agricultural Produce
Foodstuff
Flours
Tea
Coffee
Jiggery
Sugar
Milk products
Salt
Edible oil

Agriculture produce
Milk
Salt
Food grains including
Flours
Pulses
Milk
Rice

All foodstuff except food grains

Tea
Coffee
Jiggery
Sugar
Milk products
Edible oil

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18

construction,
erection,
commissioning,
installation,
completion,
fitting out,
repair,
maintenance,
renovation,
or
alteration

Any person

government,
local authority
or
a
governmental
authority

These services were

exempt
construction, erection,
commissioning, installation,
completion, fitting
out,repair, maintenance,
renovation, or alteration
of
a civil structure meant for
use other than for
commerce, industry, etc.
a structure meant
predominantly for use as
an educational, clinical, or
an art or cultural
establishment.
a residential complex
predominantly meant for
self-use or the use of their
employees.

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Now these services will

be taxable

Now exemption shall be

available ONLY in respect of the
following such services provided
to the Government,
Governmental Authority
Or a Local Authority
a) a historical monument,
archaeological site or
remains of national
importance,
archaeological
excavation, or antiquity
specified under the
Ancient Monuments and
Archaeological Sites and
Remains Act, 1958 (24
of 1958);
b) canal, dam or other
irrigation works;
c) pipeline, conduit or plant
for (i) water supply (ii)
water treatment, or (iii)
sewerage treatment or
disposal;

19

20

Exemption to services
provided by a
performing artist in
folk or classical art
form of (i) music, or
(ii) dance, or (iii)
theater,;

All Services

NA

These services were exempt

without any monetary limit

22
23

Services
of
construction,
erection,
commissioning
or
installation of original
works
Services provided
by mutual fund
agents,
Services provided by
mutual fund
distributors

Such services for a single

performance for less than Rs. 1
Lac shall continue to be exempt

where amount charged

is up to Rs. 1,00,000
for a performance

The exemption shall not apply if

services provided by artist as a
brand ambassador

NA

Cenvat Credit under partial

reverse charge basis was
available if the payment to
the service provider was
made

Cenvat Credit under

partial reverse charge
basis shall be available
even if payment to
service provider is not
made

Now under Both Partial and Full

reverse charge cases, CENVAT
credit is available if payment of
service tax has been made even if
payment for service is not made
to the service provider

NA

For Airport or port

Was exempt

For Airport or port is

now taxable

Now such services made taxable

Now taxable as exemption stands

withdrawn w.e.f. 01-04-2015

Were exempt

Now such services made taxable

and on full reverse charge basis

Now taxable as exemption stands

withdrawn w.e.f. 01-04-2015

Were exempt

Now Full reverse charge

To be paid by Service
Receiver
Now Full reverse charge
To be paid by Service
Receiver

Cenvat Credit under

partial reverse
charge cases

21

Now the exemption

shall be available on in
such cases

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Now such services made taxable

and on full reverse charge basis

24

Services provided by
agents of lottery
distributor

Now taxable as exemption stands

withdrawn w.e.f. 01-04-2015

Were exempt

Now Full reverse charge Now such services made taxable

To be paid by Service
and on full reverse charge basis
Receiver
Now
these Scope of exemption extended
services
will
include
all
ambulance
services.

25

Any
service
provided by way of
transportation of a
patient to and from a
clinical
establishment by a
clinical
establishment
is
exempt from Service
Tax
now
these
services will include
all
ambulance
services.

NA

Any service
provided by way of
transportation of a
patient to and from
a clinical
establishment by a
clinical
establishment is
exempt from
Service Tax

26

Life
insurance
service provided by
way of Varishtha
Pension
Bima
Yojna.
Service provided by
a Common Effluent
Treatment
Plant
operator
for
treatment of effluent.

NA

Taxable

Now Exempt

NA

Taxable

Now Exempt

Services by way of

NA

Taxable

Now Exempt

27

28

pre-conditioning,

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pre-cooling,
ripening,
retail

waxing,
packing,

labeling of fruits and

vegetables.

29

Service provided by

NA

Previously

any

way of admission to

service provided by

way of admission to

museum,

zoo,

national park, wild

museum

zoo

life sanctuary and a

was exempt if these

tiger reserve.

were provided by
Government

etc

Now
these
services
provided
by
any
person
shall be exempt

or

Local Authority.

30

Service provided by
way of exhibition of
movie
by
the
exhibitor
(theatre
owner)
to
the
distributor or an
association
of
persons consisting

NA

Taxable

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Now Exempt

Scope of exemption widened

31

of such exhibitor as
one of its members
is being exempted.
Goods
transport
agency
service
provided
for
transport of export
goods by road from
the place of removal
to a land customs
station (LCS).

NA

Goods
transport
agency
service
provided
for
transport of export
goods by road from
the
place
of
removal
to
an
inland
container
depot, a container
freight station, a
port or airport was
exempt
from
Service Tax

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Now exemption
is extended to
exempt
such
services when
provided
for
transport
of
export
goods
by road from
the place of
removal to a
land customs
station (LCS).

Scope of exemption extended