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This reverse charge mechanism was first introduced from 01-01-2005 on 4 services namely telecommunication service, general insurance business, insurance auxiliary service, Goods Transport Agency services

Levy of Service Tax on Resideantial / Commercial Construction has been matter of dispute which was settled by virtue of Notification No. 29/2010 dated 22nd June 2010  content of which is reproduced below:

8.1 Reverse Charge (Tax Shift) ¨     Normally, service tax is payable by person providing the service. ¨     Section 68(2) makes provision for  making person other than service provider liable to pay tax. ¨     Provision can be made that part of tax will be paid by service receiver and part by service provider. ¨     Provisions relating to reverse charge are contained in Notification No. 30/2012-ST dated 20-6-2012.

Circular No. 194/04/2016-ST F. No. 354/31/2016-TRU Government of India Ministry of Finance Department of Revenue (Tax Research Unit)

Sl. No. Service Abatement if any Effective ST Rate (including SWC & KKC) % payable by service provider % payable by service recipient ST Rate for Service Recipient (including SWC & KKC)

Prevailing Service Tax Rate :  @14% Cenvat Available Swachchh Bharat Cess :  @ 0.5% [w.e.f. 15/11/2015]- Cenvat Not Available                                                                                   Krishi Kalyan Cess :  @ 0.5% [w.e.f. 01/06/2016] New Levy- Cenvat Available                                                             1.  CHANGES IN NEGATIVE LIST AS GIVEN U/S 66D OF CHAPTER-V OF FINANCE ACT, 1994

1.  Is Government a “person” under the Finance Act 1994 for levy of service tax? Yes, as per the provisions of Section 65B (37), person includes “Government” for levy of service tax. 2. What is the meaning of “Government” under the Finance Act 1994? As per section 65B (26A) with effect from 14 th  May 2015,”Government” would mean the Departments of Central Government, a State Government and its Department and a Union

1. Threshold Exemption A Small service provider whose value of  taxable service  from one or more premises did not exceeds Rs.10 lakhs in previous financial year will be exempt from tax in next financial year upto first consecutive payment of Rs. 10 lakhs received. However, if taxable turnover in current year exceeds the specified limit, there will be no exemption from service tax in next financial year. What is relevant is turnover of previous year only. For the purpose of determining eligibility in current year, what is relevant is that ‘aggregate value’ of taxable services rendered in previous financial year should not exceed Rs.10 lakhs. Meaning of Aggregate Value :“Aggregate value” means the sum total of value of taxable services charged in the first consecutive invoices issued during a financial year but does not include value charged in invoices issued towards such services which are exempt from whole of service tax leviable thereon under section 66B of th...

CBI ARRESTS A SUPERINTENDENT OF SERVICE TAX COMMISSIONERATE FOR ACCEPTING A BRIBE OF RS.1.50 LAKH The Central Bureau of Investigation has arrested a Superintendent of Service Tax Commissionerate, Nehru Place, New Delhi for demanding & accepting a bribe of Rs.1,50,000/- from the complainant. A case was registered U/s 7 of Prevention of Corruption Act, 1988 on the allegations that the Superintendent of Service Tax Commissionerate, Nehru Place, New Delhi was demanding a bribe of Rs.2,50,000/- from the complainant for not raising a demand for service tax liability in respect of his tour & travel company. CBI laid a trap and the accused was caught red handed while accepting the bribe of Rs.1,50,000/- from the complainant. Searches were conducted at the office & residential premises of the accused which led to recovery of FDRs of Rs.35 lakh(approx) and documents of immovable properties at Dwarka & Rajendra Place, Delhi. The arrested accused is being produced tod...

As we all know that with effect from 01.10.2014 rate of interest on delayed payment of service Tax has been revised based on delay and Turnover  in Payment of service tax vide  Notification No. 12/2014 dated 11.07.2014.  To make the calculation of Interest on delayed payment of Service Tax Easy we have created a Calculator in Excel by which Readers can calculate Interest on delayed Service Tax Payment. All our readers have to do after downloading the sheet is to fill Turnover of last financial year, Service tax payable amount, swachh bharat cess payable , due date and payment date, interest will come automatically.

Vide Finance Act, 2012 Concept of Negative list of Services been introduced according to which all services except the those specified in Negative list  or been exempted specifically from service Tax  are liable for Service Tax. First Notification  issued notifying exempt services was  Principal  Notification No. 25/2012 – Service Tax, dated 20th June, 2012 .    While  Negative list of services was specified in section 66D of Finance Act, 1994 . In this Article we have prepared a List of Services which are exempt from Service Tax as on 13.04.2016 from Service Tax after considering Principal Service Tax Notification 25/2012-Service Tax and subsequent Notifications issued by CBEC from time to time. Details of Notifications effecting Subsequent Amendment to Exempt List of Services are as follows  (Updated till 13.04.2016) :-

This reverse charge mechanism was first introduced from 01-01-2005 on 4 services namely telecommunication service, general insurance business, insurance auxiliary service, Goods Transport Agency services Reverse Charge Mechanism is now, classified into two categories. A. Full Reverse Charge: In this Mechanism, the Service receiver alone is liable to pay Service Tax B. Partial/Joint Reverse Charge: In this Mechanism, both the service receiver and the service provider    are liable to pay service tax at specified percentage of the value of taxable service. Reverse charge is primarily applicable on the following specified services: Insurance Services. Services by a recovery agent to an NBFC. Good Transportation Agency Services Sponsorship Services. Arbitral Services Legal Services Services by a director to a Company or a Body Corporate.

Prevailing Service Tax Rate :  @14% Cenvat Available Swachchh Bharat Cess :  @ 0.5% [w.e.f. 15/11/2015]- Cenvat Not Available Krishi Kalyan Cess :  @ 0.5% [w.e.f. 01/06/2016] New Levy- Cenvat Available 1.  CHANGES IN NEGATIVE LIST AS GIVEN U/S 66D OF CHAPTER-V OF FINANCE ACT, 1994 ♠  ENTRY RELATED TO EDUCATIONAL SERVICES PROPOSED TO BE REMOVED FROM NEGATIVE LIST Presently, clause (I) of section 66D of the Act [Negative List] covers specified educational services. These services are proposed to be omitted from the Negative List. But the service tax exemption on them is being continued by incorporating them in the general exemption notification ( Notification No. 25/2012-ST  as amended by  notification No. 09/2016-ST, dated 01.03.2016 ); Consequently, the definition of “approved vocational education course” [clause (11) of section 65B] is also proposed to be omitted from the Finance Act and is being incorporated in the general exemption n...

Filing of returns Section 70(1) of the Finance Act, 1994 (‘Act’ for short) provides that every person liable to pay service tax shall himself assess the tax due on the services provided by him.  Besides, this section requires the assessee to furnish return to the Superintendent of Central Excise in the prescribed form and at such frequency.  If the return is not filed within the due date, the return may be filed by paying late fee which may not exceed Rs.20,000/-  Section 70(2) of the Act provides that the persons notified by the

Brief History For period prior to 01/09/2009 The services provided by any advocates are exempt from the levy of service tax. In 2009 the Union Budget introduced service tax for advocates & legal services on receipts basis with effect from 01/09/2009 to 31/03/2012. Govt impose service tax on services provided or to be provided to any business entity, in relation to advice, consultancy or assistance in any branch of law excluding appearance before any court, tribunal or authority and the term ‘business entity’ has been defined to include association of persons, body of individuals, company or firm but does not include an individual. Provisions of services were applicable on receipts basis.

Union Budget 2016: Important changes in Service Tax and Credit Rules effective from April 1, 2016 Affirming that the economy is right on track, the Hon’ble Finance Minister Shri. Arun Jaitley presented the Union Budget for 2016-17 on February 29, 2016. Although, Shri. Arun Jaitley in his ‘Make in India’ Budget speech laid more emphasis on agriculture, farmers welfare, infrastructure, social sector etc., but there are slew of changes in Indirect Taxes also, requiring attention of the Trade & Industry. Some of the changes were made effective from March 01, 2016 itself like withdrawal of exemption on services to monorail or metro, exemption to specified services provided by the IIM, retrospective Service tax exemption allowed on certain contracts etc., flurry of changes are yet to make their advent from April 1, 2016 and many others will come into force from the date of enactment of the Finance Bill, 2016. We are summarizing herewith the changes in Service Tax and Cenvat Credi...

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