• Service Tax Rate has been revised from 12.36% to 14% w.e.f 01^st June 2015 – Notification 14/2015.

• Swachh Bharat Cess of 2% will be applicable from the date to be notified.

All the Given New Exemptions shall come into effect from the 1st day of April, 2015. Service Tax Exemption given for:

• Precondition, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables: (New entry at S. No. 44 of notification No. 25/12-ST)

• Service by a Common Effluent Treatment Plant operator: (New entry at S. No. 43 of notification No. 25/12-ST).

• Varistha Bima Yojana: Life insurance service provided by way of Varishtha Pension Bima Yojna is being exempted. (Amended in the entry at S. No. 2 of notification No. 25/12-ST refers)

• Ambulance services:  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. The scope of this exemption is being widened to include all ambulance services.(Amendment in entry at S. No. 26A of notification No. 25/12-ST refers)

• Admission to a museum, zoo, national park, wild life sanctuary, and a tiger reserve: These services when provided by the Government or local authority are already covered by the Negative List. (New entry at S. No. 45 of notification No. 25/12-ST). 

• Service provided by exhibitor of movie to a distributor or an AOP consisting of exhibitor as one of its member: Service provided by way of exhibition of movie by the exhibitor (theatre owner) to the distributor or an association of persons consisting of such exhibitor as one of it’s members is being exempted. (New entry at S. No. 46 of notification No. 25/12-ST) 

• Transport of export goods by road from the place of removal to a land customs station: 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 is exempt from Service Tax vide notification No. 31/12-ST dated 20.6.2012. Scope of this exemption is being widened to exempt such services when provided for transport of export goods by road from the place of removal to a land customs station (LCS). (Amendment in notification No. 31/12-ST refers).

Amendment in reverse charge mechanism

• Full reverse charge on manpower supply and security service provided by individual, HUF, partnership firm to a body corporate: Entire 100% service tax will be payable by service receiver (against present 75%) in case of service tax on manpower supply service and security agency services.

• Prescribing reverse charge on service provided by a mutual fund agent, mutual fund distributor and agents of lottery distributor: Service Tax in respect of mutual fund agent and mutual fund distributor services shall be paid by the assets management company or, as the case may be, by the mutual fund receiving such services. In respect of agents of lottery, Service Tax shall be paid by the distributor of lottery.

Changes in Abatement

• A uniform abatement is now being prescribed for transport by rail, road and vessel and Service Tax shall be payable on 30% of the value of such service subject to a uniform condition of non-availment of Cenvat Credit on inputs, capital goods and input services. (Earlier service tax wass payable on 30% of the value of rail transport for goods and passengers, 25% of the value of goods transport by road by a goods transport agency and 40% for goods transport by vessels)

• At present, Service Tax is payable on 40% of the value of air transport of passenger for economy as well as higher classes, e.g. business class. The abatement for classes other than economy is being reduced and Service Tax would be payable on 60% of the value of such higher classes.

• Abatement is being withdrawn from services provided in relation to chit. Consequently, Service Tax shall be paid by the chit fund foremen on the full consideration received by way of fee, commission or any such amount. They would be entitled to take Cenvat Credit.