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Service Tax   – Important Amendments

.

SN
Description
Impact

1
Introduction  of Krishi Kalyna cess @ 0.5% making service tax @ 15%
Negative

2
No service tax applicable on sale of flat less than 60 SqM
Positive

3
No Input of credit of Swach Bharat cess
Negative

4
Refund of both KKC and SBC allowed
Positive

5
All services received from government are taxable under reverse charge
Negative

6
Allowability of cenvat credit on office equipment’s
Positive

7
Cenvat credit allowable to Contract/ Job worker
Positive

8
Annual return to be filed on November 30th along with 2 half year return
Negative

9
Legal services removed from reverse charge w.e.f 1.4.2016
Positive

10
One person company and HUF can pay quarterly tax
Positive

11
Notification No. 27/2012 (ST refund notification) has been amended to specify that the refund claim shall be filed before the expiry of one year from the date of receipt of foreign exchange (where service is provided prior to receipt of payment) or one year from the date of issue of invoice (where payment has been received prior to the date of issue of invoice) ‐ This shall come into force from March 1, 2016
Positive

12
No service tax on packed software
Positive

13
Normal period of limitation under Section 73 of the Finance Act, 1994 is now proposed to be extended from the current 18 months to 30 months.
 

Negative

14
Staggered interest rates for delay in payment of service tax to be done away with. Interest to be paid at the rate of 24% in case of collection of service tax but non-payment to Government. In all other cases, interest rate is capped at 15%.
 

Positive

 
 
 

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