• Hitherto Rate of Exchange for the purpose of determining value of export service was as per rates specified under Custom notification as applicable to the importer goods. It has been proposed to scrap such provision. In this connection new guidelines would be issued by a separate notification. (Effective from the date when President of India gives assent to Finance Bill)

• Time limit fixed for issuance of Order-in-Original (Although not mandatory) (Effective from the date when President of India gives assent to Finance Bill)

  • Within Six months from show cause notice date.

  • Within One year from show cause notice date where extended period is involved.

• Amendment is Section 80 dealing with waiver of penalty (Effective from the date when President of India gives assent to Finance Bill)

  • Within Six months from show cause notice date.

  • In cases involving extended period 100% penalty equivalent to service tax under section 78 have been prescribed. However, where it is proved that complete details of transaction were available in records maintained by the assessee, such penalty is reduced to 50%. Further, effective from 08.04.11 by amending Section 80, it was provided that when assessee proves reasonable cause of failure even 50% penalty can be waived. Under present amendment changes brought under statue on 08.04.11 has been dumped.

• Power of search & seizure extended to Additional Commissioner & other Officer as notified by the board over and above Joint Commissioner. (Effective from the date when President of India gives assent to Finance Bill)

• Stringent Powers extended to the Officers for Recovery of service Tax. (Effective from the date when President of India gives assent to Finance Bill)

  • If a person form whom service tax is due & recoverable transfer/ disposes his business whole or in part to a successor or if there is change in ownership. The recovery of the service tax would be made by selling all goods in the custody or possession of the successor.
    
    The term “All goods in possession or custody“ of a successor has been provided. Does that mean if a person buys goods from a defaulter, his own acquired goods can be sold.
    
    How one would ensure before buying any second hand goods that these are to be recorded by the department.

• Advance Ruling facility has been extended to Resident Private Limited Companies & Resident

• Abatement of taxable services form paying service tax Effective form 1st October, 2014)

  • Abatement in case of Transport of goods in a vessel has been increased form 50 to 60%.

  • Tour operator service providers are also being allowed to avail CENVAT credit on the input service of another tour operator, which are used for providing the taxable service. This is being provided to avoid cascading of taxes.

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