{"id":122,"date":"2015-06-24T11:50:13","date_gmt":"2015-06-24T11:50:13","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=122"},"modified":"2020-10-13T10:20:18","modified_gmt":"2020-10-13T10:20:18","slug":"changes-in-service-tax-provisions-finance-bill-2015","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/changes-in-service-tax-provisions-finance-bill-2015\/","title":{"rendered":"CHANGES IN SERVICE TAX PROVISIONS, FINANCE BILL, 2015"},"content":{"rendered":"

CHANGES IN SERVICE TAX PROVISIONS, FINANCE BILL, 2015<\/span><\/strong><\/span><\/h2>\n

Finance Bill, 2015 has got President Assent on 14th<\/sup>\u00a0May, 2015 and has become Finance Act, 2015. As you know,\u00a0Finance Bill 2015<\/a>\u00a0has proposed lot of changes in Service tax provisions, applicable with effect from various dates.<\/p>\n

Now with the enactment of Finance Bill, 2015, following changes are applicable:<\/p>\n

1)<\/span><\/strong>\u00a0<\/span>\u00a0\u00a0\u00a0Government defined in Service Tax Law:<\/span><\/strong><\/span><\/p>\n

\u201cGovernment means <\/span>the Departments of the Central Government, a State Government and its Departments and a Union territory and its Departments, but shall not include any entity, whether created by a statute or otherwise, the accounts of which are not required to be kept in accordance with article 150 of the Constitution or the rules made there under\u201d\u00a0<\/em><\/p>\n

2)<\/span><\/strong>\u00a0\u00a0\u00a0\u00a0<\/span>Amendment in definition of \u2018service\u2019 i.e. Section 65B(44):<\/span><\/strong><\/p>\n

Following activities has been specifically excluded from the term \u2018transaction in money\u2019 or we can say following activities has been<\/span> specifically included in definition of \u2018service<\/span>\u2019:-<\/span><\/span><\/p>\n

a)<\/strong>Services by chit fund foreman by way of conducting a chit<\/span><\/span><\/p>\n

b)<\/strong>Services in relation to promotion, marketing, organizing, selling of lottery or facilitating in organizing a lottery of any kind<\/p>\n

3)<\/span><\/strong><\/span>\u00a0\u00a0\u00a0\u00a0Clarification on classification of input services used for providing output services:<\/span><\/strong><\/p>\n

Section 66F(1) provides that an input service shall be classified independent to the nature of main services, for the provision of which it is utilized. Finance Bill 2015 has clarified this through following illustration:-<\/p>\n

\u201cAs illustrated, reference to service provided by the Reserve Bank of India (RBI), in section 66D (b) does not include any agency service provided by other banks to RBI, as such agency services are input services used by RBI for provision of its main service. Accordingly, banks providing agency service to or in relation to services of RBI, are liable to pay Service tax on the agency services so provided by virtue of the existing section 66F (1)<\/strong>.\u201d\u00a0\u00a0\u00a0<\/strong><\/em><\/p>\n

4)<\/span><\/strong>\u00a0\u00a0\u00a0Definition of \u2018consideration\u2019 has been amended to include reimbursement of expenses in value of taxable service.<\/span><\/strong><\/span><\/p>\n

5)<\/span><\/strong>\u00a0<\/span>\u00a0\u00a0\u00a0Recovery and Penalty<\/span> provisions revised:<\/span><\/strong><\/span><\/p>\n