New Delhi, Feb 29 (UNI) Four additional service sectors have been brought under the Service Tax Act in the General Budget 2008-09, Finance Minister P Chidambaram today announced while presenting the Budget.
The additional service sectors are Asset Management Service provided under ULIP, to bring it on par with those services provided by stock/commodities exchanges and clearing houses; customized software, to bring it on par with packaged software and other IT services; and right to use goods, in cases where VAT is not payable, he announced in the Lok Sabha.
It has been clarified that the money changers, persons running games of chance and tour operators using contract carriage vehicles are liable to service tax.
Threshold limit of exemption for small service providers is proposed to be increased from Rs 8 lakhs per annum to Rs 10 lakhs per annum. The measure is expected to benefit 65,000 small service providers.
UNI MSJ KN1444