Clarification on levy of tax for services provided by government or authority- (Ministry of Finance ) (13 Apr 2016)
MANU/DSTX/0028/2016
Service Tax
The Central Board of Excise and Customs issued a comprehensive clarification on the levy of service tax on services provided by the government or a local authority to a business entity. It also includes detailed examples to illustrate computation of service tax in situations when the service rendered is chargeable to tax.
Services provided by the government or a local authority to business entities with a turnover of over Rs. 10 lakh have become taxable effective 1 April 2016, though services such as grant of passport, visa, driving licence and other certificates are exempt. Moreover, services for which the gross amount charged by the government or authority is less than Rs. 5000 are also exempt.
Relevant : Clarifications regarding services provided by government or authority MANU/PIBU/0378/2016
Service Tax (Determination of Value) Amendment Rules, 2016 MANU/DSTX/0030/2016
Point of Taxation (Third Amendment) Rules, 2016 MANU/DSTX/0031/2016
Tags : SERVICE TAX GOVERNMENT BUSINESS ENTITY
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