Friday, April 13, 2012

Budget 2012-Service Tax - New Amendments

Service Tax-Changes in the composition rates [Rule 6]
(i)                  In case of insurer carrying on Life Insurance Business [Sub-rule (7a)]
                      Where the entire premium is not towards risk cover :-

Rate of Service tax

Prior to amendment
After Amendment
First
1.50% of the gross amount of premium charged
3% of the gross amount of premium charged
Subsequent year
1.50% of the gross amount of premium charged
1.50% of the gross amount of premium charged.



(ii)                In case of sale/purchase of foreign currency including money changing [Sub-rule (7B)]

S.No.
For an amount
Rate of Service tax


Prior to amendment
After Amendment
1.
Upto Rs. 1,00,000
0.10% of the gross amount of currency exchanged or Rs. 25 whichever is higher
0.12% of the gross amount of currency exchanged or Rs. 30 whichever is higher
2.
Exceeding Rs. 1,00,000 and upto Rs. 10,00,000
Rs. 100+0.05% of the gross amount of currency exchanged
Rs. 120+0.06% of the gross amount of currency exchanged
3.
Exceeding Rs. 10,00,000
Rs. 550+0.01% of the gross amount of currency exchanged or Rs. 5,000 whichever is lower
Rs. 660+0.12% of the gross amount of currency exchanged or Rs. 6,000 whichever is lower


(iii)               In case of Distributor or Selling Agents of Lotteries [Sub-rule (7C)]
                      Where the entire premium is not towards risk cover :-
Guaranteed lottery prize payout
Amount of Service Tax payable on ever Rs. 10 Lakh (or Part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw.
Prior to amendment
After Amendment
More than 80%
Rs. 6,000/-
Rs. 7,000/-
Less than 80%
Rs. 9,000/-
Rs. 11,000/-

[Notification No. 03/2012-ST dated 17.03.2012]

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