Service tax rate has been increased to 14% with effect from 01.Jun.2015. Please note that Education Cess (2%) Secondary & Higher education cess (1%) is not applicable wef 01.06.2015. List of service on which Swach Bahart Cess applicable and effective date of Swach Bahart Cess is not notified Yet.
However many services have abatements under valuation/composition schemes, so applicable effective rate is different for many services. However there may be some conditions along with these abatements/composition schemes. The service tax rate chart after abatement is given below.
The Hon’ble President of India has given assent to the Finance Bill, 2015 on Thursday, May 14, 2015. After that The Ministry of Finance, Department of Revenue has issued Notification No. 14/2015-ST dated May 19, 2015 thereby increasing the rate of Service tax from 12.36% to flat 14% (Subsuming Education Cess and Secondary & Higher Secondary Education Cess) to be effective from June 1, 2015. The copy of the notification along with TRU letter D.O.F.No.334/5/2015-TRU dated May 19, 2015 is attached below for viewing and downloading.
The GST Constitutional Amendment Bill paves the way for a pan-India Tax regime and a unified market across the Country, ending the multiplicity of Central and State Taxes. Because it seeks to amend the Constitutional, it needs two-thirds of both houses to vote in its favour. Key features of the bill as passed by the Lok Sabha is given as under.
In a notification issued on October 1, Punjab Excise and Taxation department has increased VAT rate on diesel (other than premium diesel), cold drinks (including aerated drinks, soda) and Cigarette and Cigar by 1 per cent, 5 per cent and 9.5 per cent respectively. The copy of the notification is attached below.
Department of Excise & Taxation, Government of Punjab has on 1st September, 2014 issued a public notice announcing that Punjab VAT form VAT-16 monthly return should now be efiled. The said public notice is attached below.
CBDT Notifies new Form 3CA, 3CB & 3CD – Format of Tax Audit Report Revised
CBDT Revises Form 3CA, 3CB and 3CD vide Notification No. 33/2014 dated 25-07-2014. The Notification is attached herewith for ready reference which will be applicable from the date of its publication in official gazette.
Notification is as follows :-
CBDT has vide notification No. 32/2014 dated 23.06.2014 prescribed new Wealth Tax Return Form BB wef A.Y. 2014-15 instead of old form BA. CBDT has also prescribed that this form can be filed online with or without digital signature. For certain class of Assessee i.e. Individual/HUF not liable to tax audit e-filing is optional but for other class of Assessees i.e. Individual/HUF liable to audit and Companies return of net wealth in FORM BB shall be furnished electronically under digital signature.
Amendment w.e.f 01.04.2014: One of the most important conditions which has been recently introduced for availing input tax credit under Punjab VAT Act, 2005 is the first proviso to section 13(1) of the said Act.
The first proviso to section 13(1) runs as under:
"Provided that the input tax credit shall not be available as input tax credit unless such goods are sold within the State or in the cource of inter-state trade or commerce or in the cource of export or are used in the manufacture, processing or packing of taxable goods for sale within the State or in the cource of inter-state trade or commerce or in the cource of export."
Public Notice Issued by the Department is as under:-
INCOME-TAX (FIFTH AMENDMENT) RULES, 2014 - SUBSTITUTION OF FORMS 49A AND 49AA
NOTIFICATION NO. 26/2014 [F.NO.142/15/2013-TPL]/SO 2045(E), DATED 16-5-2014
In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:--
1. (1) These rules may be called the Income–tax (5th Amendment) Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
Punjab Government has levied advance tax on five new items in addition to the previous list of thirty items w.e.f. 7th March, 2014. The list of the items added are mentioned below:
31. Plastic Fabric and Bags 5.5%
32. Paper Board 5.5%
33. Brass 5.5%
34. Nickel 5.5%
35. Timber 5.5%
The Punjab Government has retrospectively amended the notification relating to levy of single stage commodities with effect from1st day of March 2014 vide Notification No. S.O. 23/P.A.8/2005/S.8/2014 dated 25-03-2014. The notification is given hereunder:
Income Tax Department vide notification no 39/2013 dated 31st May 2013 has released the provisions and rules related to section 194-IA i.e. TDS on transfer of certain immovable properties other than agriculture land whose value or consideration exceeds Rs. 50 lacs, regarding mode of deduction, time of deposition and issuance of TDS certificates.
Serial no. 12 of Notification No.26/2012 as applicable w.e.f. 08.05.2013 stating that limits lower service tax to only to those houses that costs under Rs.1 crore and have carpet area less than 2000 square feet.
Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly (except where entire consideration is received after issuance of completion certificate by the completion certificate by the competent authority) [hereinafter referred as “developer’s services] was subject to service tax @3.09% (i.e. 12.36% minus 75% abatement).
Key Points in Notice of Amendments to The Finance Bill, 2013
1. Trading in commodity derivatives not to be considered as a speculative transaction
2. Requirement of TRC to contain “prescribed particulars” to be dispensed with
3. New time limits for completion of assessment or reassessment under sections 153 and 153B in cases where reference is made to TPO to apply irrespective of the date of reference to TPO or the date of passing of order under section 92CA(3)
4. No requirement to obtain TAN by transferee deducting tax under section 194-IA
5. Higher TDS under section 206AA not to be applicable in respect of tax deductible under section 194LC
6. Introduction of new section 194LD to provide concessional rate of TDS in respect of interest income of a non-resident from rupee-denominated bonds or government securities consequent to the amendment in section 206AA
7. TCS provisions under section 206C to also be attracted on cash sale of gold coins and articles weighing 10 gms or less
8. Sitting or Retired Judge of High Court with at least 7 years of service eligible for appointment as President of Appellate Tribunal
9. Land classified as agricultural land in the records of the Government and used for agricultural purposes not an asset chargeable to wealth-tax
10. Reference to FEMA, 1999 in the place of FERA, 1973/ FERA, 1947 under the Income-tax Act, 1961
11. “Authorised Person” under FEMA, 1999 to be the “person responsible for paying” for the purpose of Chapter XVII and section 285.
12. Scope of exemption of income received in India in Indian currency by a foreign company to be expanded
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Tarun Kumar Gupta
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