Please clarify the date from which the abatement changes will be applicable for service tax, giving the relevant notification number. For instance, abatement on goods transport agency service was proposed to be changed to 70 per cent from 75 per cent.
The basic notification for abatements in value of service for payment of service tax is 26/2012-ST dated June 20, 2012. It gives the description of service, the percentage of the value of service on which tax is payable and the conditions for different services. That notification has been amended five times. The amendment, through notification no. 8/2015-ST dated March 1, 2015 (besides making some other changes), raised the percentage of value on which service tax is payable from 25 per cent to 30 per cent for services of goods transport agency in relation to transportation of goods, with effect from April 1, 2015.
Please give the details regarding applicability of two per cent surcharge/cess on service tax, giving the relevant provisions.
An enabling provision was incorporated in the Finance Act, 2015 vide section 117 (Chapter VI) to impose a Swachh Bharat Cess on all or any of the taxable services at a rate of two per cent or lower on the value of such taxable services. This cess shall be levied on such services at such rate from such date as may be notified by the central government. The date from which this amendment would come into effect has not yet been notified and may be notified in due course. So, with effect from June 1, 2015, the service tax rate is 14 per cent and there is no cess or surcharge on service tax till the rate of Swachh Bharat Cess and date when that will come into force may be notified.
We negotiate sale of entire consignments from manufacturers or registered importers and order direct transport of goods to our customers, who take Cenvat Credit on the basis of manufacturers'/importers' invoices showing their name as consignee. Are we required to take registration and issue Cenvatable invoices, as the notification no. 8/2015 - Central Excise (NT) dated March 1, 2015 allows Credit only against a dealer's invoice?
There was confusion on this point but now CBEC Circular no. 1003/10/2015-CX dated May 5, 2015 has clarified that in case of such transit sale, the consignee can avail Cenvat Credit on the basis of invoice issued by the manufacturer or the registered importer. So, you need not take registration or issue any dealer invoice.
The basic notification for abatements in value of service for payment of service tax is 26/2012-ST dated June 20, 2012. It gives the description of service, the percentage of the value of service on which tax is payable and the conditions for different services. That notification has been amended five times. The amendment, through notification no. 8/2015-ST dated March 1, 2015 (besides making some other changes), raised the percentage of value on which service tax is payable from 25 per cent to 30 per cent for services of goods transport agency in relation to transportation of goods, with effect from April 1, 2015.
Please give the details regarding applicability of two per cent surcharge/cess on service tax, giving the relevant provisions.
Also Read
Sections 153 and 159 of the Finance Act, 2015 provide that section 95 of the Finance (No. 2) Act, 2004 and section 140 of the Finance Act, 2007, levying Education Cess and Secondary and Higher Education Cess, respectively, on taxable services, shall cease to have effect from a date to be notified by the central government. As per notification no.14/2015-Service Tax, dated May 19, 2015, the above provisions levying Education Cess and Secondary and Higher Education Cess will cease to have effect from June 1, 2015. It is the same date when the increase in the service tax rate to 14 per cent comes into effect.
An enabling provision was incorporated in the Finance Act, 2015 vide section 117 (Chapter VI) to impose a Swachh Bharat Cess on all or any of the taxable services at a rate of two per cent or lower on the value of such taxable services. This cess shall be levied on such services at such rate from such date as may be notified by the central government. The date from which this amendment would come into effect has not yet been notified and may be notified in due course. So, with effect from June 1, 2015, the service tax rate is 14 per cent and there is no cess or surcharge on service tax till the rate of Swachh Bharat Cess and date when that will come into force may be notified.
We negotiate sale of entire consignments from manufacturers or registered importers and order direct transport of goods to our customers, who take Cenvat Credit on the basis of manufacturers'/importers' invoices showing their name as consignee. Are we required to take registration and issue Cenvatable invoices, as the notification no. 8/2015 - Central Excise (NT) dated March 1, 2015 allows Credit only against a dealer's invoice?
There was confusion on this point but now CBEC Circular no. 1003/10/2015-CX dated May 5, 2015 has clarified that in case of such transit sale, the consignee can avail Cenvat Credit on the basis of invoice issued by the manufacturer or the registered importer. So, you need not take registration or issue any dealer invoice.