| Effective rates under the Abatement Notification No. 26/2012-ST dated June 20, 2012, w.e.f June 1, 2016 | |||||||||
| Sl. No. | Description of taxable service | Taxable per cent (%) | Effective rate of ST:
Before 01.06.2016 (%) |
Effective rate of ST:
On or After 01.06.2016 (%) |
Conditions
|
||||
| 1
|
Financial leasing including hire purchase | 10 | 1.45
|
1.5 | – | ||||
| 2 | Transport of goods by rail (other than service specified at Sl. No. 2A below) | 30 | 4.35
|
4.5
|
Cenvat credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the Cenvat Credit Rules, 2004 (“the Credit Rules”) | ||||
| 2A | Transport of goods in containers by rail by any person other than Indian Railways | 40 | 5.8
Applicable rate of ST w.e.f 01.04.2016 to 31.05.2016
Entry inserted vide NN 8/2016-ST dated 01.03.2016 w.e.f 01.04.2016 |
6
|
Cenvat credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the Credit Rules | ||||
| 3 | Transport of passengers, with or without accompanied belongings by rail | 30 | 4.35
|
4.5
|
Cenvat credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the Credit Rules. | ||||
| 4
|
Bundled services by way of supply of food or any other article of human consumption or any drink, in a premises together with renting of such premises | 70 | 10.15
|
10.5
|
(i) Cenvat credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the Credit Rules. | ||||
| 5 | Transport of passengers by air, with or without accompanied belongings in –
|
|
Cenvat credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the Credit Rules. | ||||||
| (i) economy class | 40
|
5.8
|
6
|
||||||
| (ii) other than economy class | 60 | 8.7
|
9
|
||||||
| 6 | Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes. | 60 | 8.7
|
9
|
Same as above | ||||
| 7 | Services of goods transport agency in relation to transportation of goods other than used household goods. | 30 | 4.35
|
4.5
|
Cenvat credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the Credit Rules. | ||||
| 7A | Services of goods transport agency in relation to transportation of used household goods. | 40 | 5.8
Applicable rate of ST w.e.f 01.04.2016 to 31.05.2016
Entry inserted vide NN 8/2016-ST dated 01.03.2016 w.e.f 01.04.2016 |
6
|
Same as above | ||||
| 8 | Services provided by a foreman of chit fund in relation to chit | 70 | 10.15
Applicable rate of ST w.e.f 01.04.2016 to 31.05.2016:
Entry inserted vide NN 8/2016-ST dated 01.03.2016 w.e.f. 01.04.2016, earlier omitted vide NN 08/2015-ST dated 01.03.2015. |
10.5
|
Cenvat credit on inputs, capital goods and input services, used for providing the taxable service has not been taken under the provisions of the Credit Rules
|
||||
| 9 | Renting of motorcab | 40 | 5.8
|
6
|
Cenvat credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the Credit Rules;
(ii) Cenvat credit on input service of renting of motorcab has been taken under the provisions of the Credit Rules, in the following manner: (a) Full Cenvat credit of such input service received from a person who is paying service tax on forty percent of the value; or (b) Up to forty percent credit of such input service received from a person who is paying service tax on full value; (iii) credit on input services other than those specified in (ii) above, has not been taken under the provisions of the Credit Rules |
||||
| 9A | Transport of passengers, with or without accompanied belongings, by-
a) a contract carriage other than motorcab b) a radio taxi c) a stage carriage |
40 | 5.8
|
6
|
Cenvat credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the Credit Rules | ||||
|
|
Service tax is proposed to be levied on service of transportation of passengers by air conditioned stage carriage @ 40% after abatement of 60% without input tax credit, with effect from 01.06.2016 [Deletion of Section 66D(o)(i) of the Finance Act and insertion of Entry No. 23(bb) of the Mega Exemption Notification w.e.f 01.06.2016] | ||||||||
| 10 | Transport of goods in a vessel | 30 | 4.35
|
4.5
|
Cenvat credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the Credit Rules | ||||
| 11 | Services by a tour operator in relation to:- | ||||||||
| (i) a tour, only for the purpose of arranging or booking accommodation for any person | 10 | 1.45
(14.5%*10%) |
1.5
(15%*10%) |
(i) Cenvat credit on inputs, capital goods and input services other than input services of a tour operator, used for providing the taxable service, has not been taken under the provisions of the Credit
Rules, (ii) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation. (iii) This exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, includes only the service charges for arranging or booking accommodation for any person but does not include the cost of such accommodation. |
|||||
| (ii) tours other than (i) above | 40/30 |
5.8 (15.11.2015 to 31.03.2016)
4.35 (01.04.2016 to 31.05.2016)
|
4.5
|
(i) Cenvat credit on inputs, capital goods and input services other than input services of a tour operator, used for providing the taxable service, has not been taken under the provisions of the Credit Rules
(ii) The bill issued for this purpose indicates that it is inclusive of charges for such a tour and the amount charged in the bill is the gross amount charged for such a tour. |
|||||
| NN 8/2016-ST dated 01.03.2016 w.e.f. 01.04.2016: Abatement rates in respect of services by a tour operator in relation to a tour other than (i) has been rationalised from 75% (package tour) and 60% (others) to 70%. Consequently, the category of “package tour” stands deleted w.e.f. 01.04.2016 | |||||||||
| 12 | 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 competent authority: | 30 | 4.35
|
4.5
|
(i) Cenvat credit on inputs used for providing the taxable service has not been taken under the provisions of the Credit Rules
(ii) The value of land is included in the amount charged from the service receiver. |
||||
| Effective from 01.04.2016, a uniform abatement at the rate of 70% is prescribed for services of construction of complex, building, civil structure, or a part thereof, subject to fulfillment of the existing conditions. For the scenario till 31.03.2016: | |||||||||
| (a) for a residential unit satisfying both the following conditions, namely:-
(i) the carpet area of the unit is less than 2000 square feet; and (ii) the amount charged for the unit is less than Rupees 1crore; |
25 |
3.5
|
3.625
(15.11.2015 to 31.03.2016)
|
||||||
| for other than the (a) above. | 30 | 4.2
|
4.35
(15.11.2015 to 31.03.2016)
|
||||||
Hope the information will assist you in your Professional endeavors. In case of any query/ information, please do not hesitate to write back to us.
Thanks & Best Regards
Bimal Jain
FCA, FCS, LLB, B.Com (Hons)
Author of a book on Goods and Services Tax, titled, “GOODS AND SERVICES TAX – INTRODUCTION AND WAY FORWARD” (1st Edition)
A2Z TAXCORP LLP
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