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Service Tax Changes Effective 1 Oct’ 14

Published on Wed, Oct 01,2014 | 16:49, Updated at Wed, Oct 01 at 16:49Source : 

Service Tax laws enacted under Chapter V of the Finance Act, 1994 have been amended in the Union Budget of 2014.  Khaitan & Co. lists below the amendments effective from 1st October 2014:

New Taxable Services

I.              Advertisements in internet websites, out-of-home media, on film screen in theatres, bill boards,     conveyances, buildings, cell phones, Automated Teller Machines, tickets, commercial publications, aerial advertising, etc. other than advertisements in print media;

II.            Radio cabs; and

III.          Intermediary services provided by a broker or agent in respect of supply of goods.

Valuation of Works Contract

Service Tax payable on works contract for maintenance or repair or completion and finishing services, such as glazing or plastering or floor and wall tiling or installation of electrical fittings of immovable property,   has now been increased from 60% to 70% of the gross amount charged for the works contract.

Reverse Charge Payment

A business entity registered as body corporate receiving renting of a motor vehicle from an individual, Hindu undivided family or partnership firm would now be  liable to pay Service Tax on 50% of non-abated value instead of 40% of the non-abated value.


Abatement in respect of transport of goods by a vessel has now  increased from 50% to 60%.

Export of Service

Service of hiring of Aircraft and Vessels (excluding yachts) for less than 1  month has been  made taxable on the basis of the location of service recipient under Rule 3 of the Place of Provision of Services Rules, 2012 by deleting same from Rule 9(d) thereof which provides for taxability on basis of the location of service provider.

 Variable Rate of Interest on Delayed Payment of Service Tax


Extent of delay in months

Interest per annum



>6 = 12












E-payment of Excise Duty and Service Tax has been made mandatory for every assesse unless, exempted by the jurisdictional Assistant Commissioner of Central Excise.


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