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Snapshot of Enacted Budget-2015- Service Tax

Particulars Remarks W.e.f.

Tax Rate

Service Tax Rate Increased from 12.36% to 14% No education or Higher Education Cess 01-Jun-15
Swachh Bharat Cess Upto 2% To Be Notified

Service Categories

Construction , Erection, Commisssioning , Maintenance, Repair Exemptions restricted even when provided to Government, a local authority 01-Apr-15
Manpower Supply/ Security Tax payable by receiver (100%) earlier 75%
Transport Services Exemption for Food items restricted; Taxable amount increased to 30%
Ambulance Service Exempted
Packing - Fruit / Vegetable Exempted
Effluent Treatment  By Plant Operator
Entertainment and Amusement events Exemption restricted 01-Jun-15
Process related to production of alcoholic liquor Production Now taxable
Services provided to Government All services provided to Govt. taxable under reverse charge To Be Notified


Time limit to avail cenvat credit increased from 6 months to one year 01-Mar-15
Cenvat wrongly taken OR Utilized to be recovered
Taxation of Reimbursements 14-May-15

Penalty and Recovery

Direct recovery of unpaid amount reflected in ST-3 Returns w/o Notice 14-May-15
Penalty for delay in Payment of tax maximum upto 10% of tax (Sec 76)
Penalty in case of Suppression  reduced (Sec 78)
No waiver of penalty on even on reasonble cause: Penalty Mandatory