SERVICE TAX

No change in Service Tax rates.
Basic exemption limit for service providers raised from Rs. 8 lacs to Rs. 10 lacs.
Basic exemption for obtaining Service Tax Registration raised from Rs. 7 lacs to Rs. 9 lacs.
4 New Services added within the purview are: -
asset management service provided under ULIP;
services provided by stock/ commodity exchanges and clearing houses;
right to use goods, in cases where VAT is not payable; and
customized software and other IT services. Packaged software will be subject to VAT @ 12%.
The renting of immovable property includes allowing or permitting the use of space in an immovable property, irrespective of the transfer of possession or control of the immovable property.
The monetary limit for self-adjustment of excess amount of Rs. 50,000/- to Rs. 1,00,000/-.
The time limit for filing of revised return of service tax is increased from 60 days to 90 days.
The central Excise officer has empowered to reduce or waive the penalty for delaying filing of return, where the gross amount of service tax payable is nil.
The rate of service tax on works contract service is being increased form 2% to 4% of the total of the Works Contract.
Service Tax Return Preparer Scheme is introduced under Service Tax in line with Tax Return Preparers (TRP) under Income Tax.

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