In Budget 2013 ,No change has been proposed to amend basic Service Tax rates it remains at 12% plus 3 % surcharge. However there are amendment in Negative list (addition /deletions) and abatement rates,penalties and a new Amnesty Scheme for service Tax defaulters
has been proposed.
Team Do You Know has made an attempt to summarise various amendments proposed by Finance Bill, 2013. For ease in understanding, the changes are categorized in three categories namely:-
A) Changes applicable from the date of enactment of Finance Bill, 2013,
B) Changes applicable w.e.f. 1st March, 2013, and
C) Changes applicable w.e.f. 1st April, 2013
A) Changes Applicable from the date of Enactment of Finance Bill, 2013:-
I) Scope of Negative List Enlarged:-
- a. Definition of “approved vocational education courses” is being changed to include a course run by an industrial training institute or an industrial training centre affiliated to State Council for Vocational Training. Further, courses run by an institute affiliated to the National Skill Development Corporation are being excluded from the scope of the definition because National Skill Development Corporation is not an affiliating body.
- b. The definition of “process amounting to manufacture or production” in section 65B(40) is being expanded to include processes under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955.
- c. The negative list entry in sub-clause (i) of clause (d) of section 66D is being modified by deleting the word “seed”. This will allow the benefit to all other testings in relation to “agriculture” or “agricultural produce. (more…)