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Following are the changes in Service Tax Provisions effective from 14.05.2015:

1. Term 'Government' has been defined u/s 65B(26A)

2. Reimbursement of expenses to be included in gross consideration for calculation of tax - S. 67

3. Recover of self assessed tax (not paid yet) to be directly under sec. 87 now. - s. 73(1B)

4. Benefit of reduced penalty u/s 73(4A) not available any more.

5. Penalty u/s 76 : 0% (if tax and int paid before SCN), 10% (if paid in 30 days of SCN), 25% (if paid in 30 days of order)

6. Penalty u/s 78 : 15%(if paid in 30 days of SCN), 25%(if paid in 30 days of order), 100% thereafter.

7. Sec. 80 shall be omitted. Now waiver of penalties not possible by showing reasonable cause.

8. Resident Firm can opt for Advance Rulings now.

Please note again that enhanced rate of 14% and Applicability of Swachh Bharat Cess @2% has not yet been notified and therefore presently the rate is 12.36% itself.

Contributed by our Active Member CA.Hiral Mehta.

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