FEATURES OF BUDGET 2016-2017 – Service Tax & Excise

KEY FEATURES OF BUDGET 2016-2017
PART B – SERVICE TAX / EXCISE
SERVICE TAX

1. Levy of KRISHI KALYAN CESS, on any or all the taxable services at the rate of 0.5% of the value of taxable services with effect from 1st June, 2016. Credit of KRISHI KALYAN CESS paid on input services shall be allowed to be used for payment of the proposed Cess on the service provided by a service provider.
2. Services by way of construction, erection, etc., of original works pertaining to low cost houses up to a carpet area of 60 sq m per house in a housing project approved by the competent authority under the “Affordable housing in partnership” component of PMAY or any housing scheme of a State Government are being exempted from service tax.
3. Benefits to One Person Company – Benefits of (a) quarterly payment of service tax and (b) payment of service tax on receipt basis, which are available to individual and partnership firms, are being extended to One Person Company (OPC) whose aggregate value of services provided is up to Rs. 50 lakh in the previous financial year. Further, the benefit of quarterly payment of service tax is also being extended to HUF.
4. Introduction of Annual Return – Service tax assessees above a certain threshold will also be required to file an annual return by 30th Nov of the succeeding year. This change shall come into effect from 1st April, 2016.
5. Penalty for delayed filing of annual return – Rs. 100 per day of default, subject to a maximum of Rs. 20,000/-
EXCISE
6. Reduction in number of returns to be filed by a central excise assessee above a certain threshold from 27 to 13, that is, 1 annual and 12 monthly return. CBEC will provide for e-filing of annual return.
7. Facility to file revised return for manufacturers / dealers also to be provided

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