Amendments effective from October 1, 2014
1. Levy of service tax even on radio taxi (Radio Taxi defined as "a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service”)
1. Levy of service tax even on radio taxi (Radio Taxi defined as "a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service”)
1. Levy of service tax on sale of space or time in any media (other than print media ie books not meant for commercial purposes and newspapers). Earlier service tax was applicable only on selling of space or time slots for advertisements broadcast by radio or television
2. Notification issued on the rate of foreign exchange to be used for computation of service tax liability on forex remittances also referred to as import of services (discussed above)
3. Mandatory e-payment of service tax and excise
4. Service Portion in Works Contract to be classified into two categories
a. 40% in case of Original Works
b. 70% in case of all other works contract
5. Increase in Interest Rates
Delay Interest Payable
First 6 months 18%
More than 6 months but upto one year 24%
More than one year 30%
6. Point of taxation on invoices issued from October 1, 2014 which are liable to service tax under reverse charge mechanism would be date of payment of such invoice or 3 months from the date of invoice whichever is earlier
7. Definition of the term “intermediary” amended under Place of Provision of Supply Rules to include transaction in “goods” as well. Hence, service tax would now be required to be paid even on commission received in foreign exchange for transactions in goods
Amendments effective from September 1, 2014
1. No credit can be availed after 6 months from the date of issue of CENVAT documents prescribed under CENVAT Rules
2. Notification issued on the rate of foreign exchange to be used for computation of service tax liability on forex remittances also referred to as import of services (discussed above)
3. Mandatory e-payment of service tax and excise
4. Service Portion in Works Contract to be classified into two categories
a. 40% in case of Original Works
b. 70% in case of all other works contract
5. Increase in Interest Rates
Delay Interest Payable
First 6 months 18%
More than 6 months but upto one year 24%
More than one year 30%
6. Point of taxation on invoices issued from October 1, 2014 which are liable to service tax under reverse charge mechanism would be date of payment of such invoice or 3 months from the date of invoice whichever is earlier
7. Definition of the term “intermediary” amended under Place of Provision of Supply Rules to include transaction in “goods” as well. Hence, service tax would now be required to be paid even on commission received in foreign exchange for transactions in goods
Amendments effective from September 1, 2014
1. No credit can be availed after 6 months from the date of issue of CENVAT documents prescribed under CENVAT Rules
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