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2016
  • Pursuing with an objective to finance and promote initiatives to improve agriculture and farmer welfare, the Government announced a new cess namely ‘Krishi Kalyan Cess’ (“KKC”), to be levied at 0.5% on the value of all taxable services w.e.f June 1, 2016. In this regard, a new Chapter VI is inserted in the Finance Bill, 2016, containing relevant provisions, which are applicable with enactment of the Finance Act, 2016.
  • Proceeds of KKC first be credited to Consolidated Fund of India and the CG may, after due appropriation made by Parliament by law in this behalf, utilize such sums of money of KKC for specified purposes.
  • Hence, after levy of KKC, Service tax rate will increase from 14.5% to 15%, effective from June 1, 2016. In this regard, there are many queries, which require clarification. We have summarized these queries through Frequently Asked Questions (FAQs) enumerated below.

2016
  1. Krishi Kalyan Cess @ 0.5% on gross value of taxable services (from 01.06.2016) Total ST rate @ 15%.
  2. AC Bus service by Road Transport Corporation taxable @ 6% (from 01.06.2016).
  3. Rate of ST for the package tour increased from 3.625% to 4.35%.
  4. ST on foreman commission at 10.15%.
  5. Rate of ST for sale of flats increased from 3.625% to 4.35%.

2016
  • Starting 15th November 2015, Hotel, Mobile Phone bills, airline tickets will get more expensive with the finance ministry of India deciding to impose a Swachh Bharat cess on all services.
  • As a consumer, you will have higher input cost for your business and as a business owner, you need to be sure how to deal with this new tax levy Swachh Bharat Cess.
  • "The proceeds from this cess will be used for financing and promoting Swachh Bharat initiatives," the ministry said in a statement.

2015
  • In order keep an eye on small assessees, who usually don’t fall in the ambit of service tax audits, CBEC has issued circular 185/4/2015- ST wherein check-list & revised guidelines for carrying out detailed manual scrutiny of service tax returns have been prescribed.
  • Highlights of the manual has been produced here under:
    1. To be made effective from 1st Aug’15 onwards;

2015

Changes in Service Tax…!!!

  • Please note that the increase in rate of Service Tax from 12% (plus cesses) to 14% (including cesses) as proposed in Union Budget – 2015–16 will come effect from 1st June 2015. Accordingly the provisions levying Education Cess and Secondary and Higher Education Cess would also cease to have effect from 1st June, 2015. [Notification No.14/2015-Service Tax, dated 19th May, 2015]
  • Further the following amendments proposed in Union Budget – 2015–16 would also be effective from 01-06-2015:
    • Service Tax shall be levied on the service provided by way of access to amusement facility providing fun or recreation by means of rides, gaming devices or bowling alleys in amusement parks, amusement arcades, water parks and theme parks.

2015

Changes applicable in service tax as per Finance Bill 2015 :-

  1. The following changes will be applicable from the date of enactment of finance bill :-
    • Rate of service tax is being increased from 12.36% to 14%, The Education Cess and Secondary and Higher Education Cess shall be subsumed in the new service tax rate.
    • All service provided by Government to business entity liable for service tax ( earlier only support services were liable for service tax ).
    • Now service tax will be applicable for fees charges by amusement park, arcades, water park and theme parks.

Financial Management