Amendments - Service tax 2016

Finance Bill, 2016 assented by President on May 14, 2016. Now it becomes the Finance Act, 2016 (28/2016). Key Changes in Service Tax: 

• Krishi Kalyan Cess @ 0.5% on gross value of taxable services (from 01.06.2016). Total ST rate @ 15%
• AC Bus service by Road Transport Corporation taxable @ 6% from (01.06.2016).
• Rate of ST for the package tour increased from 3.625% to 4.35%.
• ST on foreman commission at 10.15%.
• Rate of ST for sale of flats increased from 3.625% to 4.35%
• Rate of ST for transport of goods by Rail in container other than by IR increased from 4.35% to 5.8%
• Rate of ST for transport of used household increased from 4.35% to 5.8%
• Assignment of radio-frequency spectrum and subsequent transfers thereof taxable.
• Senior advocate service liable to service tax.
• Transport of passenger’s ropeway, cable car or aerial tramway made liable for ST.
• Interest rate reduced to 15% (if ST not collected) and 24% (if ST collected).
• Due date for issue of SCN extended from 18 months to 30 months.
• The monetary limit for prosecution cases enhanced to Rs.2 Crores.
• Dispute resolution scheme for the cases pending before Commissioner (Appeals).
• New levy on services exempted only if amount received and invoice raised before the notified date.
• Special exemption for construction canal, dam or other irrigation works for the period 01.07.2012 to 29.01.2014.
• Restoration of exemption for construction of non-commercial buildings for the contracts enter prior to 01.03.2015 for the period up to 31.03.2020.
• Special exemption for constriction of ports and airports for the period from 01.04.2015 to 31.03.2020 for the contracts entered prior to 01.03.2015.
• Construction under House for All (Urban) Mission / Pradhan Mantri Awas Yojana (PMAY), exempted.
• Construction of low cost houses up to a carpet area of 60 sq.m per house under Govt. scheme exempted from service tax.
• Levy of Central Excise duty/CVD and service tax on IT software made mutually exclusive.
• Services provided by the Indian Institutes of management (IIM) exempted.
• Business entity receiving any service from government to pay service tax.
• Business entity located in India to pay service tax on ocean freight availed by foreign shipping line.
• HUF and One person company (<50Lacs Turnover) to pay on quarterly basis.
• Annual returns to be filed by service provider by 30th November every year. 

Refer details in other post .