Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Sunday, May 31, 2015

The Amendments in TDS and TCS Provisions effective from 1st June 2015

Requirement for obtaining evidences

New Clause (2D) has been inserted in section 192 w.e.f 01.06.2015: The person responsible for making the payment shall obtain evidences with respect to deductions, exemptions or allowances including claim for set off of loss claimed by the employee while estimating the income of the employee for the purpose of deduction of tax under section 192.

TDS on premature withdrawal from EPF
New Section 192A has been inserted to be effective from 01.06.2015 for deduction of tax from withdrawal of Provident Fund. 

Till now the withdrawal of accumulated balance by an employee from Recognized Provident Fund is exempted from taxation. The Finance Act 2015 provides the tax on withdrawn amount to be by calculated by re - computing the tax for earlier years after treating the contribution as contribution to a un recognized Provident Fund. This has been provided to discourage the Pre- mature withdrawal and to give a boost to long term savings.

(i)     Trustees of EPF Scheme or any person responsible to make payment of accumulated balance due to an employee at the time of making payment shall deduct income tax @ 10%
(ii)   No Deduction as above shall be made if aggregate amount payable yp an employee is less than Rs.30000/-
(iii) No Deduction of tax if account is transferred from one employer to another.

(iv)  Rate of tax will be maximum marginal rate in lieu of TDS @ 10% if NO PAN is provided to the employer or to authorized person.


TDS on Interest Amendments

Following amendments have been made with respect to TDS on interest (other than interest on securities) to take effect from June 1, 2015:
(i)     The current exemption from TDS on payments of interest to members by a co-operative society will not be applicable for interest on term deposits by co-operative banks.
(ii)   The definition of 'time deposits' amended to include recurring deposits within its scope. However the threshold limit of Rs.10000/- for non deduction shall be applicable for Recurring deposits also but such limit will be computed bank wise and not branch wise.
(iii) The deduction of tax under this section from interest payments on the compensation amount shall be made only at the time of payment, if aggregate amount of such payments during a financial year exceeds INR 50,000.

TDS from payment to transporters

Presently, section 194C of the Act provides for TDS @1% if payment is made to an Individual or HUF and @ 2% in case of any other payee from contractual payment if exceeds Rs.3000/- or Rs.75000/- in aggregate in one Financial year but exempts payments made to contractors during the course of plying, hiring and leasing goods carriage if the contractor furnishes his PAN. After the amendment it provides NO TDS in case where such transporter owns ten or less goods carriages at any time during the previous year and furnishes a declaration to such effect, along with PAN.
 Such amendment is effective from June 1, 2015.

Furnishing Information of Payment to Non- Resident even if payment is not taxable or NO withholding Tax or TDS attracted

Section 195(6) of the Act provides that any person responsible for making payments to a non-resident of any sum chargeable to tax under the Income Tax Act shall furnish the information by filing form 15CA and 15CB ( from Chartered Accountant ) on or before making such payment. Now after the amendment such reporting requirements extended even in respect of payments which are not chargeable to tax under the Income Tax Act.

Further, now penalty of Rs One Lac has been provided to be imposed in case of non-furnishing of information or furnishing of incorrect information under section 195(6) through form 15CA and form 15CB.

The Amendments in Processing of TDS and TCS Quarterly Statements

(i)     The Amendment for computation of late fee payable under section 234E of the Act at the time of processing of TDS statement under Section 200A of the Act.
(ii)   The Amendment to allow the collector of tax to furnish TCS correction statement under section 206C of the Income Tax Act.
(iii) Amendment for introducing a mechanism for processing of TCS statements on the same lines of the existing provisions for processing of TDS statements.
(iv)  Amendments to provide that the intimation generated after the processing of TCS statement shall be at par with the intimation generated after processing of TDS statement.

(v)    Such Intimation generated after processing of TCS Statement shall be subject to rectification under Sec154 and/or appealable under Sec246A and demand notice will be treated as demand under Section 156.


Filing of Form 15G/15H for payment made under Life Insurance Policy

Section 194DA was inserted with effect from 1.10.2014 to provide for TDS @2% from payments made under Life Insurance Policy which are chargeable to Tax and if amount exceeds Rs. One Lac. However threshold limit of Rs. 100000/- is to high but still there may be many cases where the recipients’ total income including receipt from LIC Policy is below the taxable limit and to settle such cases the amendment is made to enable the recipient to file Form 15G or Form 15H for no TDS on receipts from LIC policies.

Relaxing requirement of obtaining TAN for certain deductors

Obtaining of TAN Under Section 203A for one time transactions e.g buying property from Non Resident above Rs.50 Lacs is burdensome for Individuals and HUFs not subject to Tax Audit. To reduce the compliance burden of these type of deductors is relaxed by inserting Section 203A(3) which provides that requirement of Obtaining TAN and quoting the same for one time transaction shall not apply to the notified deductors or collectors of Tax at source.

Penalty for failure in filing statement under section 200(2A) or Section 206C(3A)

The penalty of Rs.100/- per day for the period of failure in filing statement under section 200(2A) and Section 206C(3A) shall be levied but such penalty shall not exceed the amount of TDS or TCS..

Saturday, May 23, 2015

How to Conduct Board Meetings and General Meetings as per Secretarial Standards w.e.f. 1st July 2015

On 10th April, 2015, the Central Government granted approval under section 118(10) of the Companies Act, 2013 to the Secretarial Standards (SS-1 and SS-2) issued by the Institute of Company Secretaries of India. These Standards dealing with the manner of conducting Board Meetings and General Meetings, respectively, apply to all companies, with the exclusion of One Person Companies (OPC’s).

These Secretarial Standards will come into force from 1st July, 2015 and will apply to all such board meetings and general meetings, in respect of which notices are “issued” on or after 1st July, 2015. A brief summary of the requirements stated in the Standards is as follows.

Secretarial Standard-1 (SS-1): Meetings of the Board of Directors

Applicability: This Standard is applicable to Board Meetings of all companies, excluding OPC’s. Further, this also applies equally to all meetings of the various Committees of the Board.

Convening of a Meeting: Any Director of a company may, at any time, summon a Meeting of the Board, and the Company Secretary or where there is no Company Secretary, any person authorised by the Board in this behalf, on the requisition of a Director, shall convene a Meeting of the Board, in consultation with the Chairman or in his absence, the Managing Director or in his absence, the Whole-time Director, where there is any, unless otherwise provided in the Articles.

Day, Time, Place and Serial No.: A meeting may be convened at any time and place, on any day, excluding a National Holiday. Further, every meeting shall have a serial number. A meeting held for want of quorum shall also not be held on a National Holiday.

Notice: Notice (and Agenda along with Notes on Agenda) of a Meeting in writing of every Meeting shall be given to every Director by hand or by speed post or by registered post or by courier or by fax or by e-mail or by any other electronic means. Where a Director specifies a particular means of delivery of Notice, the Notice shall be given to him by such means. Proof of sending Notice and its delivery shall be maintained by the company.

Notice convening a Meeting shall be given at least seven days before the date of the Meeting, unless the Articles prescribe a longer period. In case the company sends the Notice by speed post or by registered post or by courier, an additional two days shall be added for the service of Notice.

Notice shall be issued by the Company Secretary or where there is no Company Secretary, any Director or any other person authorised by the Board for the purpose. The Notice shall specify the serial number, day, date, time and full address of the venue of the Meeting.

The Notice shall be given even if Meetings are held on pre-determined dates or at pre-determined intervals.

In case the facility of participation through Electronic Mode is being made available, the Notice shall inform the Directors about the availability of such facility, and provide them necessary information to avail such facility. Where such facility is provided, the Notice shall seek advance confirmation from the Directors as to whether they will participate through Electronic Mode in the Meeting. The Notice shall also contain the contact number or e-mail address(es) of the Chairman or the Company Secretary or any other person authorized by the Board, to whom the Director shall confirm in this regard.

Each item of business requiring approval at the Meeting shall be supported by a note setting out the details of the proposal, relevant material facts that enable the Directors to understand the meaning, scope and implications of the proposal and the nature of concern or interest, if any, of any Director in the proposal, which the Director had earlier disclosed.

Shorter Notice for Urgent Business: To transact urgent business, the Notice, Agenda and Notes on Agenda may be given at shorter period of time than stated above, if at least one Independent Director, if any, shall be present at such Meeting. If no Independent Director is present, decisions taken at such a Meeting shall be circulated to all the Directors and shall be final only on ratification thereof by at least one Independent Director, if any. In case the company does not have an Independent Director, the decisions shall be final only on ratification thereof by a majority of the Directors of the company, unless such decisions were approved at the Meeting itself by a majority of Directors of the company.

The fact that the Meeting is being held at a shorter Notice shall be stated in the Notice.

Attendance through Electronic Mode: Any Director may participate through Electronic Mode in a Meeting, if the company provides such facility, unless the Act or any other law specifically does not allow such participation through Electronic Mode in respect of any item of business.

Directors shall not participate through Electronic Mode in the discussion on certain restricted items, unless expressly permitted by the Chairman. Such restricted items of business include approval of the annual financial statement, Board’s report, prospectus and matters relating to amalgamation, merger, demerger, acquisition and takeover. Similarly, participation in the discussion through Electronic Mode shall not be allowed in Meetings of the Audit Committee for consideration of annual financial statement including consolidated financial statement, if any, to be approved by the Board, unless expressly permitted by the Chairman.

Quorum: The Quorum for a Meeting of the Board shall be one-third of the total strength of the Board, or two Directors, whichever is higher. Any fraction contained in the above one-third shall be rounded off to the next one. If the number of Interested Directors exceeds or is equal to two-thirds of the total strength, the remaining Directors present at the Meeting, being not less than two, shall be the Quorum during such item.

Quorum shall be present throughout the meeting. It shall be present not only at the time of commencement of the meeting but also while transacting the business.

A Director shall not be reckoned for Quorum in respect of an item in which he is interested and he shall not be present, whether physically or through Electronic Mode, during discussions and voting on such item.

The presence of all the members of any Committee constituted by the Board is necessary to form the Quorum for Meetings of such Committee unless otherwise stipulated in the Act or any other law or the Articles or by the Board.

Attendance Register: Every company shall maintain separate attendance registers for the Meetings of the Board and Meetings of the Committee. All pages of such registers should be serially numbered and if maintained in loose leaf form, they must be bound at regular intervals.

The Attendance Register should contain the following information: Serial no. and date of the meeting, place, time, names and signatures of directors (and other invitees) present. It should be authenticated by the Company Secretary or the Chairman.

In case of Directors participating through Electronic Mode, the Chairman shall confirm the attendance of such Directors. For this purpose, at the commencement of the Meeting, the Chairman shall take a roll call. The Chairman or Company Secretary shall request the Director participating through Electronic Mode to state his full name and location from where he is participating and shall record the same in the Minutes. The proceedings of such Meetings shall be recorded through any electronic recording mechanism and the details of the venue, date and time shall be mentioned.

Adjournment: The Chairman may, unless dissented to or objected by the majority of Directors present at a Meeting at which a Quorum is present, adjourn the Meeting for any reason, at any stage of the Meeting.

Notice of an adjourned Meeting shall be given to all Directors including those who did not attend the Meeting on the originally convened date and unless the date of adjourned Meeting is decided at the Meeting, Notice thereof shall also be given not less than seven days before the Meeting.

Frequency of Meetings: The Board shall meet at least once in every calendar quarter, with a maximum interval of one hundred and twenty days between any two consecutive Meetings of the Board, such that at least four Meetings are held in each Calendar Year.

Minutes of the Meeting: Minutes shall state, at the beginning the serial number and type of the Meeting, name of the company, day, date, venue and time of commencement and conclusion of the Meeting.

Minutes shall inter-alia contain:
  • Record of election of Chairman
  • Record of presence of Quorum
  • The names of Directors who sought and were granted leave of absence
  • The mode of attendance of every Director
  • In case of a Director participating through Electronic Mode, his particulars, the location from where and the Agenda items in which he participated.
  • Noting of the Minutes of the preceding Meeting.
  • The text of the Resolution(s) passed by circulation since the last Meeting, including dissent or abstention, if any.
  • The fact that an Interested Director was not present during the discussion and did not vote.
  • The views of the Directors particularly the Independent Director, if specifically insisted upon by such Directors, provided these, in the opinion of the Chairman, are not defamatory of any person, not irrelevant or immaterial to the proceedings or not detrimental to the interests of the company.
  • If any Director has participated only for a part of the Meeting, the Agenda items in which he did not participate.
  • Ratification by Independent Director or majority of Directors, as the case may be, in case of Meetings held at a shorter Notice and the transacting of any item other than those included in the Agenda.
  • Time of commencement and conclusion of meeting
  • Apart from the Resolution or the decision, Minutes shall mention the brief background of all proposals and summarise the deliberations thereof. In case of major decisions, the rationale thereof shall also be mentioned.
  • Where any earlier Resolution (s) or decision is superseded or modified, Minutes shall contain a reference to such earlier Resolution (s) or decision.

  
Within fifteen days from the date of the conclusion of the Meeting of the Board or the Committee, the draft Minutes thereof shall be circulated by hand or by speed post or by registered post or by courier or by e-mail or by any other recognised electronic means to all the members of the Board or the Committee for their comments. The Directors, whether present at the Meeting or not, shall communicate their comments, if any, in writing on the draft Minutes within seven days from the date of circulation thereof, so that the Minutes are finalised and entered in the Minutes Book within the specified time limit of thirty days. If any Director communicates his comments after the expiry of the said period of seven days, the Chairman shall have the discretion to consider such comments. In the event a Director does not comment on the draft Minutes, the draft Minutes shall be deemed to have been approved by such Director. A Director, who ceases to be a Director after a Meeting of the Board is entitled to receive the draft Minutes of that particular Meeting and to offer comments thereon, irrespective of whether he attended such Meeting or not.

Minutes shall be entered in the Minutes Book within thirty days from the date of conclusion of the Meeting. The date of entry of the Minutes in the Minutes Book shall be recorded by the Company Secretary.

Minutes of all Meetings shall be preserved permanently in physical or in electronic form with Timestamp. Minutes shall not be pasted or attached to the Minutes Book.

Other Matters: The Board shall hold its first Meeting within thirty days of the date of incorporation of the company.

Further, it shall be sufficient if a One Person Company, Small Company or Dormant Company holds one Meeting of the Board in each half of a calendar year and the gap between the two Meetings of the Board is not less than ninety days.

Where a company is required to appoint Independent Directors under the Act, such Independent Directors shall meet at least once in a Calendar Year. The meeting shall be held to review the performance of Non-Independent Directors and the Board as a whole; to review the performance of the Chairman and to assess the quality, quantity and timeliness of flow of information between the company management and the Board and its members that is necessary for the Board to effectively and reasonably perform their duties.

If the Chairman is interested in any item of business, he shall, with the consent of the members present, entrust the conduct of the proceedings in respect of such item to any Dis-interested Director and resume the Chair after that item of business has been transacted. The Chairman shall also not be present at the Meeting during discussions on such items.

The Annual Report and Annual Return of a company shall disclose the number and dates of Meetings of the Board and Committees held during the financial year indicating the number of Meetings attended by each Director.

Secretarial Standard-2 (SS-2): General Meetings

Applicability: This Standard is applicable to all types of General Meetings of all companies, excluding OPC’s and class or classes of companies which are exempted by the Central Government through notification. The principles enunciated in this Standard for General Meetings of Members are applicable mutatis mutandis to Meetings of debenture-holders and creditors.

This Standard is in conformity with the provisions of the Act. However, if, due to subsequent changes in the Act, a particular Standard or any part thereof becomes inconsistent with the Act, the provisions of the Act shall prevail.

Convening of a Meeting:  A General Meeting shall be convened by or on the authority of the Board. The Board may also, whenever it deems fit, call an Extra-ordinary General Meeting of the company.

Notice: Notice in writing of every Meeting shall be given to every Member of the company. Such Notice shall also be given to the Directors and Auditors of the company, to the Secretarial Auditor, to Debenture Trustees, if any, and, wherever applicable or so required, to other specified persons.

Notice and accompanying documents shall be given at least twenty-one clear days in advance of the Meeting. Further, in case the company sends the Notice by post or courier, an additional two days shall be provided for the service of Notice.

In case of companies having a website, the Notice shall be hosted on the website.

No items of business other than those specified in the Notice and those specifically permitted under the Act shall be taken up at the Meeting. No business shall be transacted at a Meeting if Notice in accordance with this Standard has not been given.

Proxy: The Notice shall prominently contain a statement that a Member entitled to attend and vote is entitled to appoint a Proxy, or where that is allowed, one or more proxies, to attend and vote instead of himself and that a Proxy need not be a Member. It shall also further be accompanied by an attendance slip and a Proxy form with clear instructions for filling, stamping, signing and/or depositing the Proxy form.

An instrument of Proxy is valid only if it is properly stamped as per the applicable law. Unstamped or inadequately stamped Proxies or Proxies upon which the stamps have not been cancelled are invalid.

Proxies shall be deposited with the company either in person or through post not later than forty-eight hours before the commencement of the Meeting in relation to which they are deposited and a Proxy shall be accepted even on a holiday if the last date by which it could be accepted is a holiday.

Shorter Notice: Notice and accompanying documents may be given at a shorter period of time if consent in writing is given thereto, by physical or electronic means, by not less than ninety-five per cent of the Members entitled to vote at such Meeting.

Information to be mentioned in Explanatory Statement: Notice shall clearly specify the nature of the Meeting and the business to be transacted thereat. In respect of items of Special Business, each such item shall be in the form of a Resolution and shall be accompanied by an explanatory statement which shall set out all such facts as would enable a Member to understand the meaning, scope and implications of the item of business and to take a decision thereon. In respect of items of Ordinary Business, Resolutions are not required to be stated in the Notice except where the Auditors or Directors to be appointed are other than the retiring Auditors or Directors, as the case may be.

The nature of the concern or interest (financial or otherwise), if any, of the following persons, in any special item of business or in a proposed Resolution, shall be disclosed in the explanatory statement:
-       Directors and Managers
-       Other Key Managerial Personnel
-       Relatives of persons mentioned above

In case any item of Special Business to be transacted at a Meeting of the company relates to or affects any other company, the extent of shareholding interest in that other company of every Promoter, Director, Manager, and of every other Key Managerial Personnel of the first mentioned company shall, if the extent of such shareholding is not less than two percent of the paid-up share capital of that company, also be stated in the explanatory statement.

Where reference is made to any document, contract, agreement, the Memorandum of Association or Articles of Association, the relevant explanatory statement shall state that such documents are available for inspection and such documents shall be so made available for inspection in physical or in electronic form during specified business hours at the Registered Office of the company and copies thereof shall also be made available for inspection in physical or electronic form at the Head Office as well as Corporate Office of the company, if any, if such office is situated elsewhere, and also at the Meeting.

In all cases relating to the appointment or re-appointment and/or fixation of remuneration of Directors including Managing Director or Executive Director or Whole - time Director or of Manager or variation of the terms of remuneration, details of each such Director or Manager, including age, qualifications, experience, terms and conditions of appointment or re-appointment along with details of remuneration sought to be paid and the remuneration last drawn by such person, if applicable, date of first appointment on the Board, shareholding in the company, relationship with other Directors, Manager and other Key Managerial Personnel of the company, the number of Meetings of the Board attended during the year and other Directorships, Membership/ Chairmanship of Committees of other Boards shall be given in the explanatory statement.

In case of appointment of Independent Directors, the justification for choosing the appointees for appointment as Independent Directors shall be disclosed and in case of re-appointment of Independent Directors, performance evaluation report of such Director or summary thereof shall be included in the explanatory statement.

Time, Place and Venue: Meetings shall be called during business hours, i.e., between 9 a.m. and 6 p.m., on a day that is not a National Holiday. Annual General Meetings shall be held either at the registered office of the company or at some other place within the city, town or village in which the registered office of the company is situated, whereas other General Meetings may be held at any place within India.

Frequency of Meetings: Every company shall, in each Calendar Year, hold a General Meeting called the Annual General Meeting.

Items of business other than Ordinary Business may be considered at an Extra-Ordinary General Meeting or by means of a postal ballot, if thought fit by the Board.

Quorum: Quorum shall be present throughout the meeting. Unless the Articles provide for a larger number, the Quorum for a General Meeting in case of a private company shall be two members personally present. Proxies shall be excluded for determining the quorum.

A duly authorised representative of a body corporate or the representative of the President of India or the Governor of a State is deemed to be a Member personally present and enjoys all the rights of a Member present in person. One person can be an authorised representative of more than one body corporate. In such a case, he is treated as more than one Member present in person for the purpose of Quorum. However, to constitute a Meeting, at least two individuals shall be present in person.

Presence of Directors and Auditors: If any Director is unable to attend the Meeting, the Chairman shall explain such absence at the Meeting.

The Auditors, unless exempted by the company, shall, either by themselves or through their authorised representative, attend the General Meetings of the company and shall have the right to be heard at such Meetings on that part of the business which concerns them as Auditors.

Voting: Every Resolution shall be proposed by a Member and seconded by another Member.

A Member who is a related party is not entitled to vote on a Resolution relating to approval of any contract or arrangement in which such Member is a related party.

Unless otherwise provided in the Articles, in the event of equality of votes, whether on show of hands or electronically or on a poll, the Chairman of the Meeting shall have a second or casting vote.

Every company providing e-voting facility shall offer such facility to all Members, irrespective of whether they hold shares in physical form or in dematerialised form. The facility for Remote e-voting shall remain open for not less than three days. The voting period shall close at 5 p.m. on the day preceding the date of the General Meeting. (Other provisions related to e-voting have been specifically stated in the Standard.)

Reading of Reports: The qualifications, observations or comments or other remarks on the financial transactions or matters which have any adverse effect on the functioning of the company, if any, mentioned in the Auditor’s Report shall be read at the Annual General Meeting and attention of the Members present shall be drawn to the explanations / comments given by the Board of Directors in their report.

Adjournment of Meeting: A duly convened Meeting shall not be adjourned unless circumstances so warrant. The Chairman may adjourn a Meeting with the consent of the Members, at which a Quorum is present, and shall adjourn a Meeting if so directed by the Members.

Minutes of the Meeting: Minutes shall inter-alia contain:
  • Record of election of Chairman
  • The fact that certain registers, documents and reports were available for inspection
  • Record of presence of Quorum
  • Number of members present in person including representatives
  • Number of proxies and the number of shares represented by them
  • Presence of Auditors
  • Reading of adverse remarks of Auditors and replies of the Directors
  • Summary of clarifications for each Agenda item
  • In respect of each resolution, the type of Resolution, the names of the persons who proposed and seconded and the majority with which such Resolution was passed.
  • Time of commencement and conclusion of meeting


Friday, May 22, 2015

Service Tax Amendments Applicable w.e.f. 1st June 2015

The Central Board of Excise & Custom (CBEC) has notified that the following provisions will come into effect from 1st June 2015.

- Abolition of EC & SHEC, and effective rate of service tax to be enhanced from 12.36% to 14%.

- Rule 6(3) of the CENVAT Credit Rules deals with manufacturers of goods or providers of output service, opting not to maintain separate accounts. Now, reversal of CENVAT under the said sub-rule shall be 6% of exempted goods and 7% of exempted services.

- Exemption of service tax on entry in a recognized sporting event, circus, cinematographic film, dance or theatrical performance including drama or ballet, award function, concerts, pageants, musical performances or any sporting events other than recognized sporting event, wherein entry fees is up to Rs. 500/person.

- Levy of service tax on job work processes for production of alcoholic liquor for human consumption

- For services such as those provided by money changers, air travel agents, insurance providers, lottery distributor and selling agents, the service provider is allowed to pay Service Tax at an alternative rate subject to the conditions as prescribed under Rules 6(7), 6(7A), 6(7B) and 6(7C) of the Service Tax Rules, 1994. Consequent to the upward revision in Service Tax rate, the said alternative rates shall also be revised proportionately as follows.

Booking of tickets for travel by air by an air travel agent 
New Service Tax Rate from 1st June 2015
 Rates up to 31.05.2015
1. Domestic Booking
0.70% of basic fare
0.60% of basic fare
2. International Booking
1.4% of basic fare
1.2%. of basic fare
basic fare” means that part of the air fare on which commission is paid to the air travel agent by the airline.
Insurer carrying life insurance business
New Service Tax Rate from 1st June 2015
Rates up to 31.05.2015
1. 1st year
3.50%   of Premium Charged
3%  of Premium Charged
2. Subsequent Years
1.75%   of Premium Charged
1.50%  of Premium Charged
Sale or purchase of Foreign Exchange, including money changing 
Gross Amount of Currency Exchanged
New Service Tax Rate wef 1st June 2015
Old Rate
1. Up to Rs. 1,00,000
0.14% of gross amount of currency exchanged(min.Rs.35)
0.12% of gross amount of currency exchanged(min.Rs.30)
2. 1,00,000-10,00,000
Rs.140 + 0.07% of gross amount exceeding 1 lakh
Rs.120 + 0.06% of gross amount exceeding 1 lakh
3. exceeding 10,00,000
Rs.770 + 0.014% of gross amount exceeding 10 lakhs(max. Rs.7000)
Rs.660 + 0.012% of gross amount exceeding 10 lakhs(max. Rs.6000)
Taxable service of promotion, marketing, organising or in any other manner assisting in organising lottery 
Guaranteed Prize Payout
New Service Tax Rate wef 1st June 2015
 Service Tax till 31.05.15
Prize payout More than 80%
Rs. 8,200/- on every Rs. 10 Lacs or a part of Rs. 10 Lacs of aggregate face value of lottery tickets printed by the organising State for a   draw
Rs. 7,000/- on every Rs. 10 Lac or part of Rs. 10 Lac of aggregate face value of lottery tickets printed by the organising State for a   draw
Prize payout Less than 80%
Rs. 12,800/- on every Rs. 10 Lacs or part of Rs. 10 Lacs of aggregate face value of lottery tickets printed by the organising State for a   draw
Rs. 11,000/- on every Rs. 10 Lacs or part of Rs. 10 Lacs of aggregate face value of lottery tickets printed by the organising State for a   draw

- Effective Rate of Service Tax applicable from 01.06.2015 in different situations as per point of provision of service and payment of services rendered will be as under :

Service Provided
Date of Invoice
Date of Receipt of Payment
Point of Taxation rate
Rate of Service Tax
Before 31.05.15
After 01.06.2015
After 01.06.2015
4(a)(i)
14%
Before 31.05.15
Before 31.05.15
After
01.06.2015
4(a)(ii)
12.36%
Before 31.05.15
After 01.06.2015
Before 31.05.15
4(a)(iii)
12.36%
After 01.06.2015
Before 31.05.15
After 01.06.2015
4(b)(i)
14%
After 01.06.2015
Before 31.05.15
Before
31.05.15
4(b)(ii)
12.36%
After 01.06.2015
After
01.06.2015
Before 31.05.15
4(b)(iii)
14%

- Swachh Bharat Cess @ 2% on value of taxable services and any Service provided by Government/ Local authority to Business entity to be notified at a later date.


To read more on latest Service Tax amendments, visit the following links: