TYPE OF AMENDMENT
SUMMARY OF CHANGES
This rule defines the person liable for paying service tax. Below changes are made :
1) Earlier it is provided that In case of service of Individual Advocate or Firm of advocate to Business entity, recipient of service is liable to pay service tax.
However now in case service are provided by senior advocate to business entity, then such advocate is supposed to charge and pay service tax to government.
2) Earlier it was provided that in relation to service provided by a mutual fund agent or distributor to a mutual fund or asset management company, the recipient of the service is liable to pay service tax
However now it is provided that henceforth such agent/distributor will charge & pay service tax to government
· Now senior advocate has to charge service tax on its invoice.
· In last fiscal budget (Budget 2015-16), it was provided that is case of services of mutual fund agent/distributor to Mutual Fund/Asset Management Company, recipient of service will be liable to pay service tax.
However this amendment is exactly opposite to what was incorporate in last budget.
· Consequent to above changes, necessary amendment is also made in reverse charge Notification No 30/2012 through Notification No 18/2016 ST dt 1.3.16
Proviso to Rule 6(1)
It is now provided that,
1) quarterly service tax payment benefit is available to:
a) Individual / Proprietary Firm
b) Partnership Firm
d) One Person Company, whose total taxable value of service in preceding year is less than Rs 50 lakhs.
Service Tax liability on cash basis ( that is Service Tax will be payable, when payment for service is received and not on accrual basis) facility is now allowed to:
a) Individual / Proprietary Firm
b) Partnership Firm
c) One Person Company,
whose total taxable value of service in preceding year is less than Rs 50 lakhs.
· HUF was unnecessarily deprived off benefit of quarterly payment facility of service tax till date, unlike individual or Firm.
Late but finally HUF is now allowed quarterly payment facility.
However HUF is still required to make service tax payment on accrual basis as per Point of Taxation Rules and not as per cash basis.
· Boost to One Person Company (OPC) concept. Now OPC can also pay service tax quarterly, provided his turnover in preceding year is less than Rs 50 lakhs.
Also OPC can pay service tax only after payment received for services.
Insurer carrying on life Insurance Business shall have below additional option to pay tax:
“In case of single premium annuity policies other than (i) above, 1.4 percent of the single premium charged from the policy holder”
Service tax liability on single premium annuity policies is being rationalized and the effective alternative service tax rate is being prescribed @ 1.4 % of the total premium charged.
Rule 7(3A), (3B)
Rule 7 provides for service tax returns.
Now Annual Service Tax Returnis incorporated in service tax to be filed before 30th November of the succeeding financial year.
Annual Service Tax Return is introduced as step towards GST and in line with Excise Annual Return Requirement.
Form of Annual Return Form is yet to be prescribed
This Rule provides that revised Annual Return can be filed within one month from date of submission of original Annual Return, provided original return is submitted within due date.
Revised Return facility is also allowed for Annual Return.
This Rule provides that, if Annual Return is filed after due date, then penalty is payable as under:
a) Rs 100 per day delay in filing of Annual Return
b) Subject to maximum of Rs 20,000/-
Penalty for delayed filing of Annual Return is incorporated in line with ST 3 Return.
CHANGES MADE IN SERVICE TAX RULES 1994 APPLICABLE FROM 01.04.2016
AUTHOR: RAJA BABU
We are a team of energetic Tax professionals & TaxPayers,
having positive approach to provide problem solution & to share our experiences and Knowledge in the field of Income tax ,Service Tax Excise and other Financial Matters
Utility for e filing Service Tax Return (ST3) for the period April,2016-September,2016 is available from 1.10.2016 in both Online and Off...
/fa-clock-o/ WEEK TRENDING$type=list$type=list-tab
- TDS RATES CHART FY 2016-17 AY 17-18 TDS DEPOSIT DUE DATES INTEREST PENALTY
- KNOW YOUR PAN NAME VERIFY PAN FREE CHECK NAME BY PAN
- HUF- HINDU UNDIVIDED FAMILY-BASIC REQUIREMENTS
- SERVICE TAX REVERSE CHARGE CHART WEF 01.06.2016
- VERIFY YOUR SERVICE TAX NUMBER EXCISE CODE CHECK STATUS ADDRESS LOCATION
- USEFUL METHODS OF TAX PLANNING FOR HUF
- Compliances of service tax in Banking Sector-Free ...
- Central Excise law and procedure for jewellery ind...
- Reversal of Cenvat Credit on exempted services und...
- Extended Bank hours for conducting Govt. Business ...
- Delhi Budget 2016 Highlights: Focus on education, ...
- Due date Income Tax Service Tax Excise Advance Tax...
- Construction Services provided to IIT exempted
- Indirect Tax Dispute Resolution Scheme, 2016: Clou...
- Relief to Jewellers March 2016 Excise duty may Be ...
- INTEREST RATE ON PPF NSC KVP MIS RD TIME DEPOSIT S...
- CLARIFICATION ON EXCISE ON JEWELLERY IN BUDGET-201...
- CBDT Directs Reopening Assessments In Claim Of Bog...
- Relief to small tax payers under Budget- 2016
- No Service tax could be levied if there was a tran...
- EPF REFUND SCHEME OF 10% ADMIN CHARGES TO COMPLETE...
- No direct demand on assessees if TDS already deduc...
- Increase in limitation period for issuing SCN – Is...
- Single Registration facility under Central Excise ...
- Form 16 excel software fy 2015-16 ,Challan 280-cha...
- HOW TO LOCATE YOUR ANDROID SMARTPHONE IN SECONDS
- SERVICE TAX RETURN REVISED DUE TO SWACHH BHARAT CE...
- Krishi Kalyan Cess on all taxable services w.e.f. ...
- TAX ON WITHDRAWAL OF EPF-SPF ROLL BACKED BY FINAN...
- 10 GOOD PROVISIONS OF EXCISE-SERVICE TAX IN BUDGET...
- CHANGES MADE IN CENTRAL EXCISE RULES 2002 :BUDGET-...
- CHANGES MADE IN CENTRAL EXCISE & TARIFF ACT 1984 A...
- CHANGES MADE IN CENTRAL EXCISE ACT 1944 BUDGET-201...
- INTEREST ON LATE DEPOSIT OF SERVICE TAX & OTHER PE...
- DIRECT TAX PROVISIONS IN FINANCE BILL 2016 :BUDGET...
- Service Tax Rate (Section 67A) linked to POT Rules...
- CHANGES IN INDIRECT TAXES BUDGET 2016 VIDEO BY CA ...
- SERVICE TAX ABATEMENT RATE WEF 01.04.2016 AFTER BU...
- CHANGE IN SERVICE TAX RATE WEF 01.06.2016
- CHANGES IN SERVICE TAX APPLICABLE WEF ENACTMENT OF...
- CHANGES MADE IN SERVICE TAX RULES 1994 APPLICABLE ...
- CHANGES MADE IN POINT OF TAXATION RULES 2011 (POTR...
- CHANGES MADE IN EXEMPTED LIST OF SERVICES IN BUDGE...
- Fair & Lovely scheme Black to white The Income Dec...
- CHANGES IN TDS RATES CUTOFF AMOUNT-TCS IN BUDGET 2...
- Clarification Tax Treatment for EPF-RPF-SPF Propos...
- Tax incentives for start-ups
- Increase in limit for presumptive taxation scheme ...
- Presumptive taxation scheme for Professionals
- CHANGES IN SERVICE TAX -BUDGET2016 DETAILED ANALYS...
- Key Changes in Indirect Tax Budget 2016 - CA Atul ...
- Changes in the Cenvat Credit Rules 2004 -Budget-2...
- CHANGES IN EXCISE AND CUSTOMS:UNION BUDGET 2016 DE...
- ▼ March 2016 (47)
- ► 2015 (550)
- ► 2014 (502)
- ► 2013 (415)
- ► 2012 (532)
- ► 2011 (458)
- ► 2010 (406)
- ► 2009 (127)
- ► 2008 (90)