SERVICE TAX CHANGES APPLICABLE FROM 01.04.2015
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a. Exemption given in respect of transportation of food stuff will be limited to the food grains only due to which food stuff other than food grains will also become costlier.
b. Relief in relation to precondition, pre-cooling ripening labeling of fruits and vegetables is allowed by which end cost of fruit and vegetable would get reduced.
c. Now watching of movies will become cheaper because Service provided by way of exhibition of movie by the theatre owner to the distributor or an association of persons consisting of such exhibitor as one of its members is being exempted.
d. Exemption is granted in respect of life insurance services provided by way of Varishtha Pension Bima Yojna so that people can spend their old age life in a better manner.
e. Government has given specific exemption for transporting the patients through ambulances so that financial cost on patient and family of patient can be minimized to the some extent.
f. A uniform abatement is now being prescribed for transport by rail, road and vessel thereby service Tax shall be payable on 30% of the value of such service subject to a uniform condition of non-availment of CENVAT Credit on inputs, capital goods and input services.
g. The government has reduced the abatement on business class flights. Now, travel in the business class will become costlier as the abatement has been reduced to 40% from 60%.
h. Construction of Government Schools and Buildings would become taxable.
i. Construction pertaining to port/airport would also become costlier due to withdrawal of exemption given in this respect.
