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Monthly Archives: April 2015


Modifications of the negative list applicable from the notified date:-

Betting gambling or lottery [Clause (i) of Section 66D]

Finance Bill, 2015 has inserted the following explanation in clause (i) of section 66D-

The expression, ‘gambling or lottery’ shall not include the activity specified in Explanation – 2 clause (44) of section 65B”.

Section 269SS and 269T – increase limits and widen coverage to achieve purpose

Section 269SS and 269T concern about acceptance of loan or deposit of money and repayment of the same. In view of proposed amendments, after passing of Finance Bill 2015 specified payments for property deals will also be covered. Provisions provide for receipt as well repayment by way of A/c payee cheques or draft, e- banking transfers etc. in certain circumstances.

Expanded Scope of ‘SERVICE’under finance Bill 2015(Applicable as per notified date)

The term and scope of ‘service’ has been change periodically in section 65B(44) of the Finance Act, 1994,2012 and 2015.

Following are the Amendment made by Finance Bill, 2015 (Applicable as per notified date)

Finance Bill, 2015 has amended the definition of ‘service’ under clause (44) of section 65B. Explanation – 2 has been substituted as under:

‘Explanation 2. – For the purposes of this clause, the expression “transaction in money or

actionable claim” shall not include–

Service by a Director or Body Corporate

Clause 1.1
Since 1.7.2012, any service provided by a director who is non executive, nominee and independent directors to the company, thus on such activity carried service tax is payable. Under are the justifications for clarity.
Section 65B(44) of the Finance Act, 1994 as introduced w.e.f 01.07.2012 is produced as follows:
“Service” means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include –

Service tax rate of 14% is effective immediately from a date to be notified later

The Union Budget, 2015 has proposed an increase in the rate of Service tax from 12.36% to flat 14% with abolishment of Education cess and Secondary and Higher Secondary Education cess. A new Chapter VI has been inserted that contains a new levy of cess called the ‘Swachh Bharat Cess’ which may be levied on all or any of the taxable services at the rate of 2% of the value of such services. With this Cess, Service tax rate may increase from present 12.36% to 16%.

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