Sunday, February 16, 2014

Budget 2014 - Changes in Service Tax

No Change in service tax rate.

Relief from service tax in the following two cases:

(i) By virtue of the definition of ‘agricultural produce’ in Finance Act 2012, read
with the Negative List, storage or warehousing of paddy was excluded from the levy of service tax. Rice was not. The distinction is somewhat artificial. Hence, exemption allowed for loading, unloading, packing, storage and warehousing of rice from service tax.

(ii) services provided by cord blood banks are healthcare services and exempt from service tax.

Notifications in respect of the above changes will be issued today.