Budget
2015 has a few amendments with respect to existing exemptions and
abatements. Entry no.21 of item (d) of mega exemption notification
no.25/2012 has been amended to restrict the scope of exemption on GTA
services. The details are as follows:
By
amending the above entry, exemption has been restricted only for Milk,
Salt and food grain including flours, pulses and rice transported. For
other goods like food stuff, tea, coffee, jaggery, sugar, milk products,
edible oil and alcoholic beverages no exemption would be available.
When such goods are transported, the same would be liable for service
tax after availing the abatement under Notification no.26/2012-ST in the
hands of service recipient or provider as the case may be.
Apart
from this, amendment has been made to entry no.7 of Notification
No.26/2012 wherein the abatement has been reduced to 70% from 75%
resulting in increase of liability of service tax from 25% to 30% of the
service value. This change is effective from 01st April 2015.
Goods
transport agency service provided for transport of export goods by road
from the place of removal to an inland container depot, a container
freight station, a port or airport is exempt from service tax vide
notification No. 31/12-ST dated 20.6.2012. Scope of this exemption is
also widened to exempt such services when provided for transport of
export goods by road from the place of removal to a land customs
station.This change is effective from 01st April 2015.
| SI. No. | Exemption given upto 31.03.2015 | Exemption from 1st April 2015 | ||||
|---|---|---|---|---|---|---|
| 1 | Foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages | Milk, salt and food grain including flours, pulses and rice |
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