{"id":1870,"date":"2016-03-08T10:25:25","date_gmt":"2016-03-08T10:25:25","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=1870"},"modified":"2020-10-13T09:47:12","modified_gmt":"2020-10-13T09:47:12","slug":"corporate-and-professional-update-dated-march-1-2016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-dated-march-1-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 1, 2016"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e8cd700b47d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e8cd700b47d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-dated-march-1-2016\/#CORPORATE_AND_PROFESSIONAL_UPDATE_DATED_MARCH_1_2016\" title=\"CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 1, 2016\">CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 1, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-dated-march-1-2016\/#Service_Tax_amendments_by_Union_Budget_2016\" title=\"Service Tax amendments by\u00a0Union Budget 2016\">Service Tax amendments by\u00a0Union Budget 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-dated-march-1-2016\/#Changes_applicable_wef_1st_March_2016\" title=\"Changes applicable w.e.f. 1st March, 2016\">Changes applicable w.e.f. 1st March, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-dated-march-1-2016\/#Changes_applicable_wef_1st_April_2016\" title=\" Changes applicable w.e.f.\u00a01st April, 2016\"> Changes applicable w.e.f.\u00a01st April, 2016<\/a><\/li><\/ul><\/nav><\/div>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_DATED_MARCH_1_2016\"><\/span><span style=\"color: #000080;\"><strong>CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 1, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_2988\" aria-describedby=\"caption-attachment-2988\" style=\"width: 534px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/03\/20.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-2988\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/03\/20-300x167.jpg\" alt=\"www.caindelhiindia.com; BUDGET, 2016-17\" width=\"534\" height=\"297\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/03\/20-300x167.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/03\/20.jpg 450w\" sizes=\"(max-width: 534px) 100vw, 534px\" \/><\/a><figcaption id=\"caption-attachment-2988\" class=\"wp-caption-text\">www.caindelhiindia.com; BUDGET, 2016-17<\/figcaption><\/figure>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Service_Tax_amendments_by_Union_Budget_2016\"><\/span><span style=\"color: #ff6600;\"><strong>Service Tax amendments by\u00a0Union Budget 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The Finance Bill, 2016 presented by the Finance Minister, Mr. Arun Jaitely on 29th February, 2016 has brought with it a whole new set of changes in the indirect taxes. The basic purview taken by the government behind rationalizing the transformations is to bring the current taxing provisions in line with the proposed plan of Goods and Service Tax.<\/p>\n<p style=\"text-align: justify;\">Below is List of major proposed and fallout amendments in the Service Tax:<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Changes_applicable_wef_1st_March_2016\"><\/span><span style=\"color: #0000ff;\"><strong style=\"line-height: 1.5;\">Changes applicable w.e.f. 1st March, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li><strong><span style=\"color: #00ccff;\">Restoration of Exemption on service provided to the Government, a Local Authority or a government Authority be way of construction of<\/span>\u00a0<\/strong>i) civil work or any other original work for use other than commerce, industry or any business or profession, ii) structure meant for use as (a) educational, b) clinical, c) art or cultural establishment, iii) residential complex for self-use or employees or specified person in explanation 1 of clause 44 of Section 65B of the Act.<\/li>\n<li>Restoration of exemption from service tax on service by way of construction, erection of original works pertaining to an airport, port.<\/li>\n<li>Withdrawal of exemption on service to monorail or metro in respect of contract before entered into an before 01.03.2016.<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Exemption to service by way of construction, in respect of:<\/strong><\/span><\/li>\n<\/ul>\n<ol style=\"text-align: justify;\">\n<li>Housing under housing for all mission\/pradhan mantra awas yojana:<\/li>\n<li>Low cost houses up to a carpet area of 60 square meters in a housing project under an housing scheme of the state government:<\/li>\n<\/ol>\n<ul style=\"text-align: justify;\">\n<li>Exemption to specified service provided by the Indian Institute of Management.<\/li>\n<li>Notification to ensure that Information Technology Software is subjected to either central excise duty or service tax.<\/li>\n<li>Insertion of explanation in Rule 5 of Point of Taxation of Rules, 2011.<\/li>\n<li>CENVAT Credit is being allowed to service provider providing services by way of transportation of goods by a vessel from India to abroad.<\/li>\n<li>Notification No. 27\/2012 CE(NT) dated is amended to specify relevant date for refund.<\/li>\n<li>Service provided by container train operators.<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Changes_applicable_wef_1st_April_2016\"><\/span><span style=\"color: #0000ff;\"><strong> Changes applicable w.e.f.\u00a01st April, 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li>Exemption on services by senior advocate to other advocate or to a law firm is being withdrawn. Levy under forward charge.<\/li>\n<li>Exemption on service of person represented on arbitral tribunal to an arbitral tribunal is being withdrawn.<\/li>\n<li>Exemption from service of transport of passengers by ropeway, cable car or aerial tramway is being withdrawn.<\/li>\n<li><span style=\"color: #00ccff;\"><strong>Rationalization of abatement rate and conditions;<\/strong><\/span><\/li>\n<\/ul>\n<ol style=\"text-align: justify;\">\n<li>Tour operator services solely of arranging or booking accommodation for any person in relation to a tour-90%, abatement can\u2019t be claimed where the invoice does not include the cost of such transportation.<\/li>\n<li>Tour Operator other than specified above rationalized from 75%\/60% to 70%<\/li>\n<li>Service provided by foreman to a chit fund-30%<\/li>\n<li>Condition for abatement on value of renting of motor can service, that the cost of fuel should be included in the consideration.<\/li>\n<li>Uniform abatement rate for construction of complex, building, civil structure or part thereof.<\/li>\n<li>CENVAT Credit of input services is available where abatement availed on transport of passengers by rail.<\/li>\n<li>Abatement on transport of goods by rail reduced from 70% to 60%, credit of input services is being prescribed for transport of goods in containers by rail by any person other Indian Railway.<\/li>\n<li>CENVAT Credit of input service is available where abatement is availed on transport of goods by vessel.<\/li>\n<li>Abatement on transport of goods by road reduced from 75% to 70%.<\/li>\n<\/ol>\n<ul style=\"text-align: justify;\">\n<li>The benefit of quarterly payment of service tax being extended to OPC and HUF and payment on receipt basis<\/li>\n<li>Rule 2(1)(d)(i) (D)(II) of Service Tax Rules, 1994,modifies as an individual advocate other than senior advocate.<\/li>\n<li>Invoice issued by service provider for removal of inputs and capital goods shall be valid documents.<\/li>\n<li>To give option to banking company, a financial institution including non-banking financial company for CENVAT Credit reversal under sub-rule(1),(2) and (3) of the Rule 6 along with 6(3B) of the CENVAT Credit Rules, 2004.<\/li>\n<li>Reversal of CENVAT Credit of inputs\/inputs services which have been commonly in a taxable output service as well as an activity which is not a service.<\/li>\n<li>Rule 14(2) of CENVAT Credit Rules,2004 which specifies the FIFO method for utilization of credit is being omitted.<\/li>\n<li>In sub-rule (1) of Rule 6 of CENVAT Credit Rules, 2004 explanation 3 is inserted which defines that exempted service includes an activity which is not a service.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><strong style=\"line-height: 1.5;\">Changes in the Finance Act, 1994 that get incorporated on enactment of the Finance Bill, 2016<\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li>Right to use the radio frequency spectrum and subsequent transfers in section 66E as a declared service.<\/li>\n<li>Section 67A is proposed to amended to obtain specific rule making power in respect of Point of Taxation Rules, 2011.<\/li>\n<li>Section 73 proposed to be amended to increase time limit from 18 months to thirty months.<\/li>\n<li>Section 75 proposed to be amended so that a higher rate of interest would apply to a person who has collected the amount of service tax from the service recipient but not deposited the same with the Central Government.<\/li>\n<li>Service Tax exemption to canal, dam or other irrigation works exempted from the 1<sup>st<\/sup>July 2012 to 29.01.2014.<\/li>\n<li>Approved vocational educational course is to be incorporated in the general exemption no. 25\/2012.<\/li>\n<li>Rationalization of rate of interest in case where is service tax is collected and not credited in Govt. account and others.<\/li>\n<\/ul>\n<p><!--more--><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><strong>With effect from 1st day of June, 2016 after enactment of the Finance Bill, 2016 in respect of each provision<\/strong><\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li>Krishi Kalyan Cess.<\/li>\n<li>Negative List entry that covers \u201cservice of transportation of passengers, with or without accompanied belongings, by a stage carriage\u201d is to be omitted.<\/li>\n<li>Negative List that covers services by way of transportation of goods by an aircraft or a vessel from a place outside India up to the customs station of clearance is to be omitted.<\/li>\n<li>Exemption to transportation of passengers by a stage carriage other than air conditioned stage carriage is to be exempted.<\/li>\n<li>Services by an aircraft will continue to be outside service tax net by way of exemption through notification.<\/li>\n<\/ol>\n<p style=\"text-align: justify;\">The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances;Hope the information will assist you in your Professional \u00a0 endeavors. For query or help, contact: \u00a0info@caindelhiindia.com\u00a0or call at \u00a0011-233-43-333<\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 1, 2016 Service Tax amendments by\u00a0Union Budget 2016 The Finance Bill, 2016 presented by the Finance Minister, Mr. Arun Jaitely on 29th February, 2016 has brought with it a whole new set of changes in the indirect taxes. The basic purview taken by the government behind rationalizing the transformations &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[146],"tags":[566,502,501,572,180,561,214,181,537,560,550,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1870"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=1870"}],"version-history":[{"count":3,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1870\/revisions"}],"predecessor-version":[{"id":2989,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1870\/revisions\/2989"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=1870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=1870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=1870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}