Service Tax amendments applicable with effect from 1st April 2016.

1.       Exemptionon services by senior advocate to other advocate or to a law firm is beingwithdrawn. Levy under forward charge. A personrepresented on an arbitral tribunal to an arbitral tribunal.

2.   Exemptionbeing withdrawn from the services of transport of passengers, by ropeway, cablecar or aerial tramway.

3.     Date from which the definition of support services shall stand deleted from theFinance Act, 1994.

4.   New exemptions for services by,-

a.       Annuity under the National Pension System

b.      Securities and Exchange Board of India (SEBI)

c.       Employees‟ Provident Fund Organisation (EPFO)

d.  Biotechnology incubators approved by BiotechnologyIndustry Research Assistance Council (BIRAC).

e.      National Centre for Cold Chain Development

f.        Insurance Regulatory and Development Authority(IRDA) of India.

g.       Niramaya‟ Health Insurance scheme implementedby National Trust

h.    Threshold exemption to services provided by aperforming artist in folk or classical art form is being increased from Rs 1lakh charged per event to Rs 1.5 lakh charged per event.

i.         Deen Dayal Upadhyay Grameen Kaushalya Yojanatraining partners .

j.     Assessing bodies empanelled centrally byDirectorate General of Training, Ministry of Skill Development &Entrepreneurship.

5. Rationalisation of abatement rates and conditions thereof in respect of services by,-

(i)                  Tour operator services

(ii)                transport of passengers by rail.

(iii)              transport of goods by rail.

(iv)              shifting of used household goods by a GTA

(v)                foreman to a chit fund.

(vi)              renting of motor-cab services.

(vii)             transport of goods by vessel.

(viii)           Construction of complex, building, civilstructure, etc.

6.     Service tax Rules,-

(i)            The benefit of (a) quarterly payment of servicetax being extended to OPC and HUF and (b) payment on receipt basis beingextended to OPC.

(ii)             Rule 2(1)(d)(i) (D)(II) modified as an individual advocate other than senior advocate.

(iii)          (The word “support” shall stand deleted from rule 2(1)(d)(i) (E)

(iv)           Rule 2(1)(d)(EEA) making mutual fund agents/distributor as person liable for paying   service tax will be deleted

(v)              The service tax composition scheme for single premium annuity policies.

7. Reverse charge mechanism

(i)           mutual fund agents/distributors to an asset managementcompany under forward charge.

(ii)      service provided by Government or local authorities to business entities shall be on the service recipient. 

8. Cenvat Credit Rules, 2004

(i)           Invoice issued by Service provider for removal of inputs and capital goods shall be a valid document.

(ii)     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 rule 6(3B) of the Cenvat Credit Rules, 2004.

(iii)        Cenvat credit of service tax paid on upfront charges for assignment of spectrum/ mining rights etc.

(iv)              Reversal of Cenvat Credit of inputs/input services which have been commonly used in a taxable output service as well as an activity which is not a „service‟.

(v)                Sub-rule (2) of rule 14 being omitted.