12 changes in Service Tax Provisions – Budget 2014

Annual Budget was announced on 10th July 2014, in this article, we would focus on  12 changes in Service Tax Provisions – Budget 2014 .

12 changes in Service Tax Provisions – Budget 2014
  1. To broaden the tax base in Service Tax, sale of space or time for advertisements in broadcast media, extended to cover such sales on other segments like online and mobile advertising. Sale of space for advertisements in print media however would remain excluded from service tax. Service provided by radio-taxis brought under service tax.
  2. Services by air-conditioned contract carriages and technical testing of newly developed drugs on human participants brought under service tax.
  3. Provision of services rules to be amended and tax incidence to be reduced on transport of goods through coastal vessels to promote Indian Shipping industry.
  4. Services provided by Indian tour operators to foreign tourists in relation to a tour wholly conducted outside India to be taken out of the tax net and Cenvat credit for services of rent-a-cab and tour operators to be allowed to promote tourism.
  5.  Service tax exempted on loading, unloading, storage, warehousing and transportation of cotton, whether ginned or baled.
  6. Services provided by the Employees’ State Insurance Corporation for the period prior to 1st July 2012 exempted, from service tax.
  7. Exemption available for specified micro insurance schemes expanded to cover all life micro-insurance schemes where the sum assured does not exceed Rs.50, 000 per life insured.
  8. For safe disposal of medical and clinical wastes, services provided by common bio-medical waste treatment facilities exempted.
  9.  Tax proposals on the indirect taxes side are estimated to yield Rs 7525 crore.
  10.  24X7 customs clearance facility extended to 13 more airports in respect of all export goods and to 14 more sea ports in respect of specified import and export goods to facilitate cargo clearance.
  11.  ‘Indian Customs Single Window Project’ to facilitate trade, to be implemented.
  12.  The scheme of Advance Ruling in indirect taxes to be expanded to cover resident private limited companies. The scope of Settlement Commission to be enlarged to facilitate quick dispute resolution.