New Service Tax Rate of 14% to Come Into Effect From June 1
New Service Tax Rate of 14% to Come Into Effect From June 1
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
NOTIFICATION
New Delhi, the 19th May, 2015
No. 14/2015-Service Tax
G.S.R. —(E).- In exercise of the powers conferred by clauses (a), (c) and (f) of section
107, section 108, sub-sections (2), (3) and (4) of section 109, section 153 and section 159 of the
Finance Act, 2015 (No. 20 of 2015), the Central Government hereby appoints the 1st day of
June, 2015 as the date on which the provisions of clauses (a), (c) and (f) of section 107, section
108, sub-sections (2), (3) and (4) of section 109, section 153 and section 159 of the said Act shall come into force.
[F.No. 334/5/2015 – TRU]
(Akshay Joshi)
Under Secretary to the Government of India
107. In the Finance Act, 1994 (hereinafter referred to as the1994 Act), save as otherwise provided, in section 65B,—
(a) clause (9) shall be omitted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint;
(b) after clause (23), the following clause shall be inserted, namely:—‘(23A) “foreman of chit fund” shall have the same meaning as is assigned to the term “foreman” in clause (j) of section 2 of the Chit Funds Act, 1982;’;
(c) clause (24) shall be omitted with effect from such date as the CentralGovernment may, by notification in the Official Gazette, appoint;
(d) after clause (26), the following clause shall be inserted, namely:—‘(26A) “Government” means the Departments of the Central Government,a State Government and its Departments and a Union territory and its Departments,but shall not include any entity, whether created by a statute or otherwise, the accounts of which are not required to be kept in accordance with article 150 of the Constitution or the rules made thereunder;’
e) after clause (31), the following clause shall be inserted, namely:— ‘(31A) “lottery distributor or selling agent” means a person appointed or authorised by a State for the purposes of promoting, marketing, selling or facilitating in organising lottery of any kind, in any manner, organised by such State in accordance with the provisions of the Lotteries (Regulation) Act, 1998;’;
f) in clause (40), the words “alcoholic liquors for human consumption,” shall be
omitted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint;
(g) in clause (44), for Explanation 2, the following Explanation shall be substituted, namely:— ‘Explanation 2.—For the purposes of this clause, the expression “transaction in money or actionable claim” shall not include––
(i) any activity relating to use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged;
(ii) any activity carried out, for a consideration, in relation to, or for facilitation of, a transaction in money or actionable claim, including the activity carried out––
(a) by a lottery distributor or selling agent in relation to promotion, marketing, organising, selling of lottery or facilitating in organising lottery of any kind, in any other manner;
(b) by a foreman of chit fund for conducting or organising a chit in any manner.’;
(h) clause (49) shall be omitted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint.
108. In section 66B of the 1994 Act, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, for the words “twelve per cent.”, thewords “fourteen per cent.” shall be substituted.
109. In section 66D of the 1994 Act, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint,—
(1) in clause (a), in sub-clause (iv), for the words “support services”, the words “any service” shall be substituted;
(2) for clause (f), the following clause shall be substituted, namely:— “(f) services by way of carrying out any process amounting to manufacture or production of goods excluding alcoholic liquor for human consumption;”;
(3) in clause (i), the following Explanation shall be inserted, namely:— Explanation.– For the purposes of this clause, the expression “betting,gambling or lottery” shall not include the activity specified in Explanation 2 to clause (44) of section 65B;’;
(4) clause (j) shall be omitted.
153. In the Finance (No. 2) Act, 2004 (herein referred to as 2004 Act), in Chapter VI, section 95 shall be omitted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint.
