By TIOL News Service

NEW DELHI, DEC 19, 2015: ON the indirect tax front, the NDA Government has taken several steps to expand the tax base. Some of them are as follows:

++ excise duty exemption on condensed milk put up in unit containers and peanut butter have been withdrawn.

++ The service tax rate was increased from 12% plus Education Cesses to 14%, w.e.f. 1 st June 2015.

++ Service provided by way of access to amusement facility such as rides, bowling alleys, amusement arcades, water parks, theme parks, etc.

++ Service by way of admission to entertainment event of concerts, non-recognized sporting events, pageants, music concerts and award functions, if the amount charged for admission is more than Rs.500.

++ Service by way of carrying out any processes as job work for production or manufacture of alcoholic liquor for human consumption.

++ An enabling provision was made to exclude all services provided by the Government or local authority to a business entity from the Negative List. Once this amendment is given effect to, all service provided by the Government to business entities, unless specifically exempt, shall become taxable.

The General Exemptions in service tax were reviewed and the following exemptions have been withdrawn:

++ Specified services of construction, repair of civil structures, etc. when provided to Government except such services provided to,-

a) a historical monument, archaeological site

b) Canal, dam or other irrigation work;

c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal.

++ Construction, erection, commissioning or installation of original works pertaining to an airport or port.

++ Services provided by a performing artist in folk or classical art form of (i) music, or (ii) dance, or (iii) theater. Exemption will be limited only to such cases where amount charged is upto Rs 1,00,000 per performance (except brand ambassador).

++ Services provided by a mutual fund agent to a mutual fund or assets management company; distributor to a mutual fund or AMC; and selling or marketing agent of lottery ticket to a distributor of lottery.