President gives assent to Finance Bill 2008

Subscribe to Oneindia News

New Delhi, May 10 (UNI) President Pratibha Patil today gave assent to the Finance Bill 2008, thereby making the amendment regarding transaction between associated enterprises effective from today.

As per the amendment, service tax is required to be paid even if the consideration for the taxable services provided is not actually received.

In addition, service tax on seven new categories of services and amendments to existing taxable services will be effective from May 16.

The seven new categories are services provided by stock exchanges, commodity exchanges, processing and clearing houses and management of unit-linked insurance plans.

Others include services provided in relation to information technology software for use in the course of business, services provided in relation to supply of tangible goods without transferring right of possession and services provided in relation to internet telecommunication.

Amendments in Export of Services Rules, 2005, and Taxation of Services (provided from outside India and received in India) will also come into effect from May 16.

The optional scheme for payment of service tax on Purchase or Sale of foreign currency will also come under the tax net from the same date.

The Finance Ministry also notified service tax refunds to exporters on three additional services, including purchase or sale of foreign currency under banking and other financial services, purchase or sale of foreign currency under foreign exchange broking services and services related to supply of tangible goods for use. These provisions will come into effect from May 16.

Certain provisions related to the levy of service tax in the Finance Act, 2008, will come into force from a date that it yet to be notified.

UNI MP SBA AS2055

Please Wait while comments are loading...