- Changes in Service Tax Rates
- Krishi Kalyan Cess at 0.5% on gross value of taxable services
- Service tax rate increased from 14.5% to 15%
- Service tax on transport of goods by rail by person other than?Indian?railway is 6%
- Service Tax for the package tour increased from 3.625% to 4.35%
- Service tax for sale of flats increased from 3.625% to 4.35%
- Service tax for transport of goods by Rail in vessel other than by IR increased from 4.35% to 5.8%
- Service tax on hotel services (club, pundal, shamiana) with supply of food is 10,15%
- Other Amendments
- Interest rate on delayed payments reduced to 15% (if ST not collected) and 24% (if ST collected)
- Due date for issue of Show Cause Notice has been extended from 18 months to 30 months
- Indirect Tax disputes
A scheme in respect of cases pending before Commissioner (Appeals), the assessee, after paying the duty, interest and penalty equivalent to 25% of duty, can file a declaration, is introduced. In such cases the proceedings against the assessee will be closed and he will also get immunity from prosecution. However, this scheme will not apply in cases:
- where prosecution has already been launched
- involving narcotics & psychotropic substances
- involving detention under COFEPOSA.
- New AnnualReturn for Service Provider?
Annual returns to be filed by service provider by 30th Nov every year.
- One Person Company
Now they can pay tax quarterly and on receipt basis. This is a summarization of an article from Tax India Updates. For more information visit http://taxindiaupdates.in/changes-proposed-in-service-tax-by-union-budget-2016-17/