Saturday, 17 March 2012

SERVICE TAX CHANGES IN BUDGET 2012

Service Tax Changes in Buget 2012.

01. Negative List of 17 services introduced. hence all other services are now taxable 

02.  Rate of Service Tax Increased to 12.36%

03. Now export can be said if the following conditions are satisfied :
(a) Service provided from India
(b) Service received outside India
(c) POS outside India
(d) Receipt of Forex

04. Reverse charge on service tax introduced for Motor Car hire, Man power Service etc. and Work contract tax. hence in case service provider is taking abatement then service receipt is require to pay balance tax.

05. billing incresased by any amount now under service tax but not interest and penalty

06.  Individual/Firm whose Turnover are less than 50 Lakhs now can opt for payment basis.

07.  Proposal for Monthly filing of return

08.  Now adjustment of excess service tax paid is possible. 

09. Railways are now also covered under Service Tax with abatement of  30%

10. Special Audit Provisions Introduced.

11. Systeam of Appeal are now in line with Excise 

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