ST - Statutory Amendments - Impact
By TIOL News Service
NEW DELHI, FEB 28, 2015: AMUSEMENT to be taxed : Service Tax shall be levied on the service provided by way of accessto amusement facility providing fun or recreation by means ofrides, gaming devices or bowling alleys in amusement parks,amusement arcades, water parks and theme parks.
Concerts to cost more : Service tax to be levied on service by way of admission toentertainment event of concerts, pageants, musical performancesconcerts, award functions and sporting events other than therecognized sporting event, if the amount charged is more thanRs. 500 for right to admission to such an event.
Chit Fund and Lottery brought to Tax, negating Court decisions : Activities undertaken by chit fund foremen in relation to chit, and Lottery distributors and selling agents, in relation to lotteries now constitute service. Definition service [section65 B (44)] amended to include these activities.
RBI not left alone : Banks providing agency service to or in relation to services of RBI, are now liable to pay Service Tax.
Positive government ?:Certain Services, provided by the government are included in the Negative List and specified services received by the government are also exempt. However, these exclusion/exemption applicable if an entity is a “Government” as per the following definition of ‘Government' now being inserted-
What is Government? Look for the definition . “Government” means the Departments of the Central Government, a State Governmentand its Departments and a Union territory and its Departments, but shall not include any entity, whether created by a statute or otherwise, the accounts of which are not required to be kept in accordance with article 150 of the Constitution or the rules made thereunder.
Why should Government define government? The TRUJS says, “ Hitherto, the term “government” hasnot been defined in the Act or the notification. This has given rise tointerpretational issues. To address such issues, a definition of the term“government” is being incorporated in the Act.”